Which of the following would be included in cash flows from operating activities?
A)Cash received from customers.
B)Cash received from an issuance of bonds.
C)Cash dividends paid to stockholders.
D)Cash used for purchases of equipment.

Question

Quizplus · Accepted Answer

Operating activities are cash inflows and outflows related directly to the revenues and expenses reported on the income statement (including cash received from customers).Cash received from bonds and the payment of cash dividends are financing (rather than operating)activities.Cash used to purchase equipment is an investing (rather than an operating)activity.

Which of the Following Would Be Included in Cash Flows