Which of the following items would not be classified as an operating activity on the statement of cash flows?
A) Cash received from customers.
B) Dividends paid to the company's own stockholders.
C) Payments to government agencies for taxes.
D) Cash paid to compensate employees.

Question

Quizplus · Accepted Answer

Dividends paid to the company's own stockholders would be classified as a financing activity on the statement of cash flows, not an operating activity. Operating activities generally include cash flows related to day-to-day business operations, such as cash received from customers, payments to suppliers, and payments to compensate employees.

Which of the Following Items Would Not Be Classified as an Operating