Which of the following would not be included in the operating activities section of a statement of cash flows? Cash inflows from returns on loans (i.e., interest) Cash inflows from returns on equity securities (i.e., dividends) Cash outflows to governments for taxes Cash outflows to reacquire treasury stock

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Which of the following would not be included in the operating activities section of a statement of cash flows? Cash inflows from returns on loans (i

Accounting Mar 20, 2021

Which of the following would not be included in the operating activities section of a statement of cash flows?

1. Cash inflows from returns on loans (i.e., interest)
2. Cash inflows from returns on equity securities (i.e., dividends)
3. Cash outflows to governments for taxes
4. Cash outflows to reacquire treasury stock

Expert Solution

Answer: d . Cash outflows to reacquire treasury stock

Issuances of stock or bonds by a company are not counted as operating activities. operating activities includes the following, accounts receivable inventory , supplies , prepaid insurance ,accounts payable ,wages payable, income taxes payable , unearned revenues

Reference;
https://corporatefinanceinstitute.com/resources/knowledge/accounting/operating-cash-flow/

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