Cash flows from operating activities, as reported on the statement of cash flows, would include
A) depreciation.
B) gain on sale of equipment
C) increase in accounts receivable.
D) All of these.

Question

Quizplus · Accepted Answer

Cash flows from operating activities include any cash inflows or outflows related to a company's primary business operations. Depreciation is added back to net income because it's a non-cash expense that reduced net income. Gain on sale of equipment is recorded as a cash inflow, and increase in accounts receivable is recorded as a cash outflow. Therefore, all of these options are included in operating activities.

Cash Flows from Operating Activities, as Reported on the Statement