Which of the following is reported as an operating activity in the statement of cash flows?
A) The purchase of long-lived assets.
B) The acquisition of treasury stock.
C) The retirement of bonds.
D) The payment of prepaid insurance.

Question

Quizplus · Accepted Answer

The payment of prepaid insurance is reported as an operating activity in the statement of cash flows, as it is a transaction that affects the company's day-to-day operations and expenses. The purchase of long-lived assets, the acquisition of treasury stock, and the retirement of bonds are reported as investing or financing activities.

Which of the Following Is Reported as an Operating Activity