Which of the following events do NOT affect cash flows from operating activities? Assume the direct method is used.
A) cash sale of merchandise inventory
B) cash purchase of equipment
C) cash purchase of inventory
D) cash paid for employees' wages

Question

Quizplus · Accepted Answer

Cash flows from operating activities only involve transactions related to the day-to-day operations of the business, such as the sale of merchandise inventory or the payment of employees' wages. Cash purchases of equipment are classified as investing activities.

Which of the Following Events Do NOT Affect Cash Flows