When reading the Cash Outflows from Operating Activities portion of the statement of cash flows, you would expect to find which of the following? I. Payments to suppliers
II. Payments to customer:
III. Payments to employees
IV. Payments of interest
V. Payments for income tax
VI. Other operating payments
A)I, II, III, and V
B)I, III, IV, and VI
C)I, II, III, IV, V, and VI
D)I, III, IV, VI, and V

Question

When reading the Cash Outflows from Operating Activities portion of the statement of cash flows, you would expect to find which of the following? I. Payments to suppliers
II.  Payments to customer:
III. Payments to employees
IV. Payments of interest
V. Payments for income tax
VI. Other operating payments
A)I, II, III, and V
B)I, III, IV, and VI
C)I, II, III, IV, V, and VI
D)I, III, IV, VI, and V

Quizplus · Accepted Answer

Payments to suppliers, employees, interest, income tax, and other operating payments are typical cash outflows from operating activities. Payments to customers are not a standard outflow in this category, as they would represent inflows for the customers instead.

When Reading the Cash Outflows from Operating Activities Portion of the Statement