Which of the following activities will impact the operating section of the statement of cash flows?
A)Sale of stock
B)Payment of dividends
C)Purchase of fixed assets
D)Payment to a vendor

Question

Quizplus · Accepted Answer

Payment to a vendor is a cash outflow that is directly related to the day-to-day operations of the business and therefore impacts the operating section of the statement of cash flows. Sale of stock is a financing activity, payment of dividends is a financing or investing activity (depending on the type of dividend), and purchase of fixed assets is an investing activity.

Which of the Following Activities Will Impact the Operating Section