The following items would be classified as operating activities on the statement of cash flows:
A) Payments for inventory, payments for salaries, cash received from sale of goods.
B) Acquisitions of equipment, payment of dividends, revenue.
C) Proceeds from borrowing, payments of dividends, purchases of supplies.
D) Payments on loans, payments for taxes, payments for rent.

Question

Quizplus · Accepted Answer

Payments for inventory and salaries are expenses related to operating activities and cash received from the sale of goods is revenue from operating activities.

The Following Items Would Be Classified as Operating Activities on the Statement