operating cash flows would include which of the following?\nmultiple choice\nrepayment of borrowed…
operating cash flows would include which of the following?\nmultiple choice\nrepayment of borrowed money.\npayment for a new operating equipment.\nservices provided to customers on account.\npayment for employee salaries.
Answer
Brief Explanations:
Operating cash - flows are related to the day - to - day business operations. Repayment of borrowed money is a financing activity. Payment for new operating equipment is an investing activity. Services provided on account is part of revenue recognition but not a cash flow until cash is received. Payment for employee salaries is a regular operating expense and thus part of operating cash - flows.
Answer:
D. Payment for employee salaries