Choose the combination that best reflects the appropriate classification of cash paid for operating,investing and financing activities. Operating Investing Financing
A) Cash paid to suppliers Interest paid Dividends paid
B) Interest paid Cash paid to suppliers Income taxes paid
C) Income taxes paid Purchase of stock of another entity Dividends paid
D) Dividends paid Income taxes paid Cash paid to suppliers

Question

Quizplus · Accepted Answer

Operating activities include transactions related to the primary operations of the company, such as income taxes paid and cash paid to suppliers. Investing activities involve the purchase and sale of long-term assets and investment securities, like the purchase of stock of another entity. Financing activities involve transactions with creditors and investors, such as paying dividends.

Choose the Combination That Best Reflects the Appropriate Classification of Cash