The cash flows from operating activities section of the statement of cash flows considers
A) interest expense.
B) cost of raw materials.
C) dividends paid.
D) stock repurchases.

Question

Quizplus · Accepted Answer

The cash flows from operating activities section of the statement of cash flows deals with cash inflows and outflows directly related to a company's primary operations. One such cash outflow is the cost of raw materials, which are directly used in the production process. Interest expense, dividends paid, and stock repurchases are not typically considered operating activities and would be reported in other sections of the statement of cash flows.

The Cash Flows from Operating Activities Section of the Statement