Chow Company earned $1,500 of cash revenue,paid $1,200 for cash expenses,and paid a $200 cash dividend to its owners.Which of the following statements is true?
A)The net cash inflow from operating activities was $100.
B)The net cash outflow for investing activities was $200.
C)The net cash inflow from operating activities was $300.
D)The net cash outflow for investing activities was $100.

Question

Quizplus · Accepted Answer

Cash revenue and cash expenses are operating activities.Paying dividends is a financing activity.$1,500 revenue ? $1,200 expense = $300 cash inflow from operating activities.

Chow Company Earned $1,500 of Cash Revenue,paid $1,200 for Cash