Which of the following items would be reported as an operating activity?
A) purchase of land
B) payment of interest
C) payment of dividends
D) sale of common shares

Question

Quizplus · Accepted Answer

Payment of interest is typically a part of a company's regular operations and would be reported as an operating activity in the cash flow statement.

A) Purchase of land would be reported as an investing activity. 
 C) Payment of dividends would be reported as a financing activity. 
 D) Sale of common shares would also be reported as a financing activity.

Which of the Following Items Would Be Reported as an Operating