On the statement of cash flows, the cash flows from operating activities section would include
A) receipts from the issuance of common stock
B) payment for interest on short-term notes payable
C) payments for the purchase of investments
D) payments for cash dividends

Question

Quizplus · Accepted Answer

The cash flows from operating activities section only includes cash inflows and outflows that are directly related to the company's primary operations, such as cash received from customers and cash paid for operating expenses (including interest on short-term notes payable). Receipts from the issuance of common stock and payments for the purchase of investments are cash flows from investing activities, while payments for cash dividends are cash flows from financing activities.

On the Statement of Cash Flows, the Cash Flows from Operating