Which section of the statement of cash flows would show Rena's payments for food ingredients and wages paid to employees?
A) Cash flows from operating activities
B) Cash flows from financing activities
C) Business cash flows
D) Non-business-related cash flows
E) Cash flows from investing activities

Question

Quizplus · Accepted Answer

Rena's payments for food ingredients and wages paid to employees are part of the operating expenses in running her business. Therefore, they would be reflected in the cash flows from operating activities section of the statement of cash flows. Choices B, C, D, and E are all incorrect as they do not relate to Rena's business expenses.

Which Section of the Statement of Cash Flows Would Show