Which of the following transactions would be reported as cash flow from operating activities on a cash flow statement?

A) Cash paid to purchase equipment.
B) Cash paid to acquire land.
C) Cash paid for dividends to the company's stockholders.
D) Cash paid for wages.

Question

Ashna Lamba · Accepted Answer

Final Answer : D, Explanation :  Cash paid for wages is an expense related to the operations of the business and therefore would be reported as cash flow from operating activities on a cash flow statement. Choices A, B, and C are related to investing or financing activities, not operating activities.

Which of the following transactions would be reported as cash flow from operating activities on a cash flow statement?

A) Cash paid to purchase equipment.
B) Cash paid to acquire land.
C) Cash paid for dividends to the company's stockholders.
D) Cash paid for wages.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following transactions would be reported as cash flow from operating activities on a cash flow statement?A) Cash paid to purchase equipment.B) Cash paid to acquire land.C) Cash paid for dividends to the company's stockholders.D) Cash paid for wages.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following transactions would be reported as cash flow from operating activities on a cash flow statement?

A) Cash paid to purchase equipment.
B) Cash paid to acquire land.
C) Cash paid for dividends to the company's stockholders.
D) Cash paid for wages.