All of the following activities would be included in a company's operating activities on a statement of cash flows except
A)payments to employees.
B)payment to a local government for property taxes.
C)payment to suppliers.
D)payment to the bank to reduce loan balance.
E)payment to landlord for rent.

Question

Quizplus · Accepted Answer

Payment to the bank to reduce loan balance is a financing activity, not an operating activity. Operating activities involve transactions related to the day-to-day operations of the business, such as payments to employees, payments to suppliers, and payments for rent. Payments for taxes may also be considered operating activities depending on the nature of the taxes.

All of the Following Activities Would Be Included in a Company's