Operating activities include all except:
A)a decrease in accounts receivable.
B)an increase in wages payable.
C)the payment of dividends to shareholders.
D)a decrease in accounts payable.

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day functions of the company, including cash inflows and outflows related to sales, expenses, and other operating items. Payment of dividends to shareholders is a financing activity since it involves returning profits to investors. Options A, B, and D all involve changes in liabilities related to operating activities, such as the collection of accounts receivable, payment of wages, and settling debts with suppliers.

Operating Activities Include All Except