Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?
A)Cash dividends paid to stockholders.
B)Cash received from selling equipment.
C)Cash paid to retire bonds payable at maturity.
D)Cash received from accounts receivable collections.

Question

Quizplus · Accepted Answer

Cash received from accounts receivable collections is an operating activity as it reflects the company's core business operations.

Which of the Following Would Be Classified as an Operating