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Dream Ice Cream Company Paid $500,000 in Salaries Last Year

Question 56

Multiple Choice

Dream Ice Cream Company paid $500,000 in salaries last year along with $25,000 in income tax. How would you best classify these expenses if you were preparing its cash flow statement?


A) financing activities
B) shareholders' equity
C) operating activities
D) cash balance
E) investing activities

Correct Answer:

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