Which of the following is not classified as an operating activity?
A) Interest paid on long-term debt.
B) Dividends received on common stock.
C) Dividends paid on common stock.
D) Payments on accounts payable.

Question

Quizplus · Accepted Answer

Dividends paid on common stock are classified as financing activities, not operating activities. Operating activities involve the primary revenue-generating activities of the business, whereas financing activities involve ways in which a business finances its operations, including payments of dividends.

Which of the Following Is Not Classified as an Operating