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.payment of employee salariesretirement of common stockpurchase of a buildinginterest paid on notespurchase of supplies with cash
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.payment of employee salariesretirement of common stockpurchase of a buildinginterest paid on notespurchase of supplies with cash
Solution
The items classified as cash outflows from operating activities on the statement of cash flows are:
- Payment of employee salaries
- Interest paid on notes
- Purchase of supplies with cash
Retirement of common stock and purchase of a building are not classified as cash outflows from operating activities. They are usually considered as financing and investing activities respectively.
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