Which is not a cash outflow from an operating activity?
A)Payment for interest on a loan
B)Payment to the government for taxes
C)Payment to buy merchandise inventory
D)Paying dividends to stockholders

Question

Quizplus · Accepted Answer

Paying dividends to stockholders is considered a financing activity, not an operating activity. Operating activities involve the cash flows directly related to earning income, including payments for interest, taxes, and inventory purchases.

Which Is Not a Cash Outflow from an Operating Activity