Which of the following would be reported on the statement of cash flows,using the direct method,as a cash flow from operating activities?
A)Payment of income taxes.
B)Payment of dividends.
C)Purchase of a building.
D)Purchase of treasury stock.

Question

Quizplus · Accepted Answer

Payment of income taxes is an operating activity as it arises from the company's core business operations. B is incorrect as payment of dividends is a financing activity. C is incorrect as purchase of a building is an investing activity. D is incorrect as purchase of treasury stock is also a financing activity.

Which of the Following Would Be Reported on the Statement