Which of the following would be included in calculating net cash flows from operating activities?
A)Cash proceeds from sales.
B)Cash received from an issuance of bonds.
C)Dividends paid to shareholders.
D)Cash used for purchases of equipment.

Question

Quizplus · Accepted Answer

Net cash flows from operating activities relate to the cash generated or used in the normal operating activities of the business. Cash proceeds from sales is a cash inflow that comes from the primary source of revenue and is included in calculating net cash flows from operating activities. B, C, and D are cash flows for financing and investing activities and are, therefore, not included in the net cash flows from operating activities.

Which of the Following Would Be Included in Calculating Net