The Appropriate Section in the Statement of Cash Flows for Reporting

question 38

Multiple Choice

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

• A)Operating activities.
• B)Financing activities.
• C)Investing activities.
• D)Schedule of noncash investing or financing activity.
• E)This is not reported on the statement of cash flows.

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Definitions:

Employment Disability

A condition or situation where an individual is unable to work due to injury or illness, potentially affecting their income.

Salaries And Wages Expense

The total amount spent by a business on employee salaries and wages before deductions during a given period.

Monthly Payroll

Monthly payroll refers to the total amount of wages or salaries paid by a business to its employees on a monthly basis, including deductions and taxes.

FICA Taxes Withheld

Amounts deducted from employees' paychecks to cover their portion of Social Security and Medicare taxes as required by the Federal Insurance Contributions Act.