Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?
A)Cash dividends paid.
B)Cash received from selling equipment.
C)Cash paid to retire bonds payable at maturity.
D)Cash received from accounts receivable collections.

Question

Quizplus · Accepted Answer

In the direct method,sales would be converted to cash by adding a decrease in accounts receivable or by subtracting an increase in accounts receivable.Paying cash dividends and paying cash to retire bonds are financing activities.Selling equipment is an investing activity.

Which of the Following Would Be Classified as an Operating