Which of the following is not an operating cash flow? O a

Finance Oct 30, 2020

Which of the following is not an operating cash flow?
O a. payment of income tax O b. collection of cash from receivables Q c. payment of cash for operating
expenses
Q d. Purchase of equipment for cash

Expert Solution

Purchase of equipment for cash is an investing activity. The payment of income tax, Collection of receivable and payment for operating expense are operating activities as they result in change in current asset or current liability.

The correct option is D "Purchase of Equipment for Cash".

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