Which of the following is never an operating activity?
A) Cash payments for interest to another entity
B) Cash receipts interest from another entity
C) Dividends in the form cash payments to equity-holders of an entity
D) Dividends in the form of cash payments received as returns on equity instruments held by an entity
E) All of the above are operating activities

Question

Quizplus · Accepted Answer

Dividends paid out to equity holders of an entity are considered financing activities, not operating activities. Operating activities involve the primary revenue-producing activities of the entity and other activities that are not investing or financing activities.

Which of the Following Is Never an Operating Activity