Which of the following does not represent a cash flow relating to operating activities?
A)Cash dividends paid to stockholders.
B)Cash received from customers.
C)Interest paid to bondholders.
D)Cash paid for salaries.Dividends paid to stockholders are considered cash flows relating to financing activities.However, U.S.GAAP requires interest paid to bondholders to be considered an operating activity.

Question

Quizplus · Accepted Answer

Cash dividends paid to stockholders are considered cash flows relating to financing activities.

Answer: C
 U.S.GAAP requires interest paid to bondholders to be considered an operating activity.

Therefore, the best choice is A.

Which of the Following Does Not Represent a Cash Flow