On the statement of cash flows, which one of the following is considered an operating activity?
A) Increase in net fixed assets
B) Decrease in accounts payable
C) Purchase of equipment
D) Dividends paid
E) Repayment of long-term debt

Question

Quizplus · Accepted Answer

Decrease in accounts payable represents a cash outflow for the company, which is considered an operating activity on the statement of cash flows. Increases in net fixed assets, purchase of equipment, repayment of long-term debt, and payment of dividends are all investing or financing activities.

On the Statement of Cash Flows, Which One of the Following