Which of the following is reported as an operating activity on a cash flow statement prepared using the indirect method?
A)Cash received from the sale of land
B)Proceeds from the sales of investments
C)Dividends paid to stockholders
D)Increases in Accounts Payable

Question

Quizplus · Accepted Answer

Increases in Accounts Payable are reported as an operating activity on a cash flow statement prepared using the indirect method because they represent a cash outflow for expenses that have been incurred but not yet paid. Choices A and B are reported as investing activities, and choice C is reported as a financing activity.

Which of the Following Is Reported as an Operating Activity