On the statement of cash flows, the Cash flows from operating activities section would include
A) receipts from the issuance of capital stock
B) payment for interest on short-term notes payable
C) payments for the purchase of investments
D) payments for cash dividends

Question

Quizplus · Accepted Answer

Cash flows from operating activities includes cash inflows and outflows that are directly related to a company's regular operations, such as receipts from customers, payments to suppliers, and payment of interest on short-term notes payable. Receipts from the issuance of capital stock, payments for the purchase of investments, and payments for cash dividends are not considered operating activities.

On the Statement of Cash Flows, the Cash Flows from Operating