Select all that applyWhich of the following items are classified as cash outflows from operating activities on the statement of cash flows?Multiple select question.purchase of supplies on accountissuance of bondspurchase of buildingpayment of an accounts payable balancepayment of salaries
Question
Select all that applyWhich of the following items are classified as cash outflows from operating activities on the statement of cash flows?Multiple select question.purchase of supplies on accountissuance of bondspurchase of buildingpayment of an accounts payable balancepayment of salaries
Solution
The items that are classified as cash outflows from operating activities on the statement of cash flows are:
- Purchase of supplies on account
- Payment of an accounts payable balance
- Payment of salaries
The purchase of a building is typically considered an investing activity, not an operating activity. The issuance of bonds is a financing activity, not an operating activity.
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