Which section of the statement of cash flows would show Wendy's payments for food ingredients and wages paid to employees?
A) cash flows from operating activities
B) cash flows from financing activities
C) business cash flows
D) non-business-related cash flows
E) cash flows from investing activities

Question

Quizplus · Accepted Answer

Payments for food ingredients and wages paid to employees are expenses related to the operating activities of Wendy's business. Therefore, they will be shown in the cash flows from operating activities section of the statement of cash flows. Choices B, C, D, and E are not relevant to showing the payments for food ingredients and wages paid to employees.

Which Section of the Statement of Cash Flows Would Show