A use of cash for operating activities is ________.
A)payment of an account payable
B)payment of dividends
C)cash used to buy equipment
D)cash used to purchase treasury stock

Question

Quizplus · Accepted Answer

Payment of an account payable is a use of cash for operating activities because it represents a cash outflow for a cost incurred in the normal course of business operations. Payment of dividends (B) is a use of cash for financing activities, cash used to buy equipment (C) is a use of cash for investing activities, and cash used to purchase treasury stock (D) is also a use of cash for financing activities.

A Use of Cash for Operating Activities Is ________