Which of the following is an operating cash flow?
A) issue of shares
B) purchase of equipment
C) repayment of a loan
D) taxes paid.

Question

Quizplus · Accepted Answer

Operating cash flows refer to the cash inflows and outflows directly related to a company's regular operations. Taxes paid is a cash outflow that is directly related to a company's operations, making it the only operating cash flow option listed.

Option A, issue of shares, is a financing activity, as it involves raising capital through the sale of equity. Option B, purchase of equipment, is an investing activity, as it involves acquiring long-term assets. Option C, repayment of a loan, is also a financing activity, as it involves paying back borrowed funds.

Which of the Following Is an Operating Cash Flow