Which of the following transactions would decrease the cash from operating activities?
A)the payment of dividends
B)the sale of goods on account
C)the purchase of goods on account
D)the payment of wages

Question

Quizplus · Accepted Answer

The payment of wages is an operating expense, and paying them would decrease cash from operating activities. Payments for dividends are considered financing activities, while transactions on account (both sales and purchases) do not immediately affect cash flow until the payment is made or received.

Which of the Following Transactions Would Decrease the Cash from Operating