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11 February, 17:31

Cash paid for which of the following activities would affect the amount reported for operating cash flows in the statement of cash flows?

Issuing common stock

Paying dividents

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Answers (1)
  1. 11 February, 20:21
    0
    Paying electricity bill for the month

    Explanation:

    The operating activities are shown in the cash flow statement. It has two methods

    1. Direct method: The direct method records all those expenses related to the cash receipts and the cash payments

    2. Indirect method: The indirect method records that transactions that impacts the working capital that means a change in the working capital which would come after reporting the net income.

    So, the electricity bill is a cash payment that is to be reported in the operating activities.
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