Which of the following is not classified among the operating activities in a statement of cash flows?
A) Payment of interest on a bank loan.
B) Payment of the principal amount owed on a bank loan.
C) Payment of an account payable to a supplier.
D) Payment of income taxes.

Question

Quizplus · Accepted Answer

Payment of the principal amount owed on a bank loan is classified as a financing activity, not an operating activity, since it involves the repayment of borrowed funds. Operating activities include cash inflows and outflows related to day-to-day business operations, such as payment of accounts payable and income taxes. Payment of interest on a bank loan may be classified as an operating or financing activity depending on the company's accounting policies.

Which of the Following Is Not Classified Among the Operating