Which one of the following below would not be classified as an operating activity?
A) interest expense
B) income taxes
C) payment of dividends
D) selling expenses

Question

Quizplus · Accepted Answer

Interest expense, income taxes, and selling expenses are all expenses that are incurred in the day-to-day operations of the business, and are therefore classified as operating activities. Payment of dividends, on the other hand, is a distribution of profits to shareholders and is not directly related to the operations of the business. Therefore, it would not be classified as an operating activity.

Which One of the Following Below Would Not Be Classified