1. Which of the following is NOT a cash flow from operating activities a.Cash re
ID: 2775636 • Letter: 1
Question
1. Which of the following is NOT a cash flow from operating activities
a.Cash receipts from selling goods and services
b.Cash payments on the principal of long-term debt
c.Payments for utilities and rent
d.Payments to purchase raw materials
2.Which of the following is NOT a cash flow from investing activities?
a.Buying and selling stocks of other firms
b.Buying and selling bonds of other firms
c.Cash payments of dividends to shareholders
d.Buying or selling of land, buildings, and plant and equipment
a.Cash receipts from selling goods and services
Explanation / Answer
Cash payments on the principal of long term debt is not a cash flow from operating activities it is a cash flow from financing activity
Cash payments of dividends to shareholders is not a cash flow from investing activities it is a cash flow from financing activities alternatively it can be treated as cash flow from operating activities
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