Which of the following would be reported on the statement of cash flows,using the direct method,as a cash flow from operating activities?
A)Payment of income taxes.
B)Payment of cash dividends.
C)Purchase of a building.
D)Purchase of treasury stock.

Question

Quizplus · Accepted Answer

Cash from operating activities using the direct method is calculated by directly converting revenues to cash receipts and expenses to cash payments.Income tax expense would be converted to cash paid for income taxes.

Which of the Following Would Be Reported on the Statement