On the statement of cash flows,an amount paid for utilities would be classified as
A) a financing activity.
B) an operating activity.
C) an investing activity.
D) a noncash activity.

Question

Quizplus · Accepted Answer

Utilities payment is an expense incurred in the daily operations of the business, which makes it an operating activity. Financing activities involve transactions related to debt or equity financing, while investing activities involve the purchase or sale of long-term assets. Non-cash activities are typically transactions that do not involve cash, such as the issuance of stock or the exchange of assets.

On the Statement of Cash Flows,an Amount Paid for Utilities