Cash outflows from operating activities of a private company reporting under ASPE include all of the following EXCEPT payments to
A) suppliers for inventory.
B) employees for services.
C) lenders for interest.
D) shareholders for dividends.

Question

Quizplus · Accepted Answer

Under Accounting Standards for Private Enterprises (ASPE) in Canada, cash outflows from operating activities include payments made to suppliers for inventory and employees for services, as well as interest payments to lenders. However, payments made to shareholders for dividends are classified as financing activities, not operating activities.

Cash Outflows from Operating Activities of a Private Company Reporting