On a company's cash flow statement, the amount it receives when it pays taxes is considered which type of cash flow?
A) Operating
B) Investing
C) Financing
D) Not a cash flow

Question

Quizplus · Accepted Answer

The amount a company receives when it pays taxes is considered an operating cash flow because it relates to the core operations of the business. Taxes are a part of the day-to-day activities that involve the production and delivery of goods and services, and thus, the cash flows associated with them are classified as operating cash flows.

On a Company's Cash Flow Statement, the Amount It Receives