Using the direct method of preparing the statement of cash flows,which of the following is not an activity generating operating cash flows?
A)Payments to employees
B)Payments to suppliers
C)Repayment of debt
D)Payments for operating expenses

Question

Quizplus · Accepted Answer

Repayment of debt is a financing activity and does not generate operating cash flows. A, B, and D generate operating cash flows as they are all related to the company's day-to-day operations.

Using the Direct Method of Preparing the Statement of Cash