Which of the following will be categorized as an operating activity on the statement of cash flows?
A) Cash received by selling old equipment
B) Cash paid for purchase of new machinery
C) Cash paid to employees
D) Cash paid for patent

Question

Quizplus · Accepted Answer

Cash paid to employees is categorized as an operating activity because it relates to the ongoing operations of the business. Choices A and D are categorized as investing activities, and B is categorized as a financing activity.

Which of the Following Will Be Categorized as an Operating