Which of the Following Is Not Classified Among the Operating

question 163

Multiple Choice

Which of the following is not classified among the operating activities in a statement of cash flows?

• A) Payment of interest on a bank loan.
• B) Payment of the principal amount owed on a bank loan.
• C) Payment of an account payable to a supplier.
• D) Payment of income taxes.

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Definitions:

Investments

Funds committed into ventures with the expectation of earning a return or profit.

Withdraw

To withdraw means to take out funds from an account, remove participation in an activity, or retract from a position or commitment.

Retire

To withdraw a financial instrument from circulation, or for an individual to leave the workforce and cease employment.

Invested

The action of allocating resources, usually money, with the expectation of generating an income or profit.