The cash flows from operating activities section of the statement of cash flows includes ________.
A) principal received
B) cost of raw materials
C) dividends paid
D) stock repurchases

Question

Quizplus · Accepted Answer

The cash flows from operating activities section includes transactions related to the principal business activities of the company. This would include the cost of raw materials as it is a necessary expense for the production of goods/services. Dividends paid and stock repurchases are related to financing activities, and principal received is related to investing activities, so they would not be included in the operating activities section.

The Cash Flows from Operating Activities Section of the Statement