Which of the following items would be included as an operating activity on the statement of cash flows, using the direct method?
A)purchase of treasury stock
B)payment of dividends
C)issuance of stock
D)payment of interest expense

Question

Quizplus · Accepted Answer

Payment of interest expense is an operating activity as it represents the cash outflow related to the use of funds to support the company's operations. Purchasing of treasury stock represents a financing activity, payment of dividends represents a financing activity or an investing activity depending on the situation, and issuance of stock represents a financing activity.

Which of the Following Items Would Be Included as an Operating