Cash paid towards salaries is classified in which section of the statement of cash flows?

Question

Quizplus · Accepted Answer

Cash paid towards salaries is an operating expense and therefore falls under the operating section of the statement of cash flows, which shows the cash inflows and outflows from the company's core business activities. Investing activities involve the purchase or sale of long-term assets, while financing activities involve raising capital through borrowing or equity offerings. Noncash activities include transactions like depreciation or stock-based compensation which do not involve actual cash transactions.

Cash Paid Towards Salaries Is Classified in Which Section of the Statement