Which of the following is a cash outflow from operating activities?
A) Purchase of debt or equity
B) Payment of dividends
C) Payments to suppliers
D) Purchase of plant, property, and equipment
E) Redemption of capital stock

Question

Quizplus · Accepted Answer

Payments to suppliers are a cash outflow from operating activities as they relate to the payment for goods and services received in the normal course of business operations. The other choices such as purchase of debt or equity, payment of dividends, purchase of plant, property, and equipment, and redemption of capital stock are cash outflows from investing, financing, or other non-operating activities.

Which of the Following Is a Cash Outflow from Operating