Where would cash payments for insurance appear in the statement of cash flows?
A)Operating activities
B)Financing activities
C)Investing activities
D)Capital activities
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Cash payments for insurance are considered part of operating activities because they are related to the core operations of the business. Operating activities are those that result in changes in the size and composition of current assets and current liabilities, and are usually reported first on the statement of cash flows.

Where Would Cash Payments for Insurance Appear in the Statement