Which of the following cash flows results from an operating activity?
A)Paying employees' monthly payroll
B)Declaring a dividend of $5 per share
C)Selling an investment in another company
D)Purchasing a new delivery truck

Question

Quizplus · Accepted Answer

Paying employees' monthly payroll is a cash outflow and is considered an operating activity as it is necessary for the daily operations of the business. Declaring a dividend is a financing activity, selling an investment is an investing activity, and purchasing a new delivery truck is also an investing activity.

Which of the Following Cash Flows Results from an Operating