Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method.
-Paid employee salaries and wages.
A)Inflow from operating activity
B)Outflow from operating activity
C)Inflow from investing activity
D)Outflow from investing activity
E)Inflow from financing activity
F)Outflow from financing activity
G)Noncash investing and financing activity
H)Not reported on statement of cash flows

Question

Quizplus · Accepted Answer

Payment of employee salaries and wages is an outflow from operating activity and would be reported in the operating activities section of the statement of cash flows using the direct method.

Use the Following Codes to Indicate How the Cash Flow