Which of the following would not be included within the operating activities section of a cash flow statement?

A) Cash received from customers.
B) Cash paid for insurance.
C) Cash paid for interest expense.
D) Cash paid to acquire a patent.

Question

Karra Biggs · Accepted Answer

Final Answer : D, Explanation :  Cash paid to acquire a patent is a investing activity, as it relates to the acquisition of a long-term asset. The operating activities section of a cash flow statement includes cash inflows and outflows directly related to the company's primary operations, such as revenue from customers, payments to suppliers, and salaries and wages to employees. Cash paid for insurance and interest expense are also operating activities, as they are expenses related to the normal operations of the business.

Which of the following would not be included within the operating activities section of a cash flow statement?

A) Cash received from customers.
B) Cash paid for insurance.
C) Cash paid for interest expense.
D) Cash paid to acquire a patent.

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Learning Objectives

Related questions

Which of the following would not be included within the operating activities section of a cash flow statement?A) Cash received from customers.B) Cash paid for insurance.C) Cash paid for interest expense.D) Cash paid to acquire a patent.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which of the following would not be included within the operating activities section of a cash flow statement?

A) Cash received from customers.
B) Cash paid for insurance.
C) Cash paid for interest expense.
D) Cash paid to acquire a patent.