Which of the following transactions would be reported as cash flow from operating activities on a cash flow statement?
A)Cash paid to purchase equipment.
B)Cash paid to acquire land.
C)Cash paid for dividends to the company's stockholders.
D)Cash paid for wages.

Question

Quizplus · Accepted Answer

Cash paid for wages is an expense related to the operations of the business and therefore would be reported as cash flow from operating activities on a cash flow statement. Choices A, B, and C are related to investing or financing activities, not operating activities.

Which of the Following Transactions Would Be Reported as Cash