Which one of the following is found in the operating activity section of a statement of cash ﬂows?
A) Decrease in long-term debt.
B) Fixed asset acquisition.
C) Dividends paid.
D) Increase in accounts payable.
E) Decrease in common stock.

Question

Quizplus · Accepted Answer

The decrease in accounts payable is a part of the operating activity section of a statement of cash flows as it represents a decrease in liabilities that result from the company's day-to-day operations. Choice A is a part of the financing activity section, as it represents a decrease in long-term liabilities. Choice B is a part of the investing activity section, as it represents the acquisition of a long-term tangible asset. Choice C is also a part of the financing activity section, as it represents a distribution of profits to shareholders. Choice E is not included in any section of the statement of cash flows, as it represents a change in equity.

Which One of the Following Is Found in the Operating