On a statement of cash flows, which is considered an operating activity?
A) Sale of securities
B) Purchase of fixed assets
C) Purchase of securities
D) Depreciation

Question

Quizplus · Accepted Answer

Depreciation is considered an operating activity as it is a non-cash expense that is included in the calculation of net income. It is added back in for the calculation of cash flows from operating activities. Sales and purchases of securities are considered investing activities, while the purchase of fixed assets is considered a financing activity.

On a Statement of Cash Flows, Which Is Considered an Operating