Question

Which of the following are operating activities for the purpose of preparing a cash flow statement?

1. Cash payments to suppliers for goods and services.
2. Dividend received from investments in other enterprises.
3. Cash receipts from royalties, fees, commissions, and other revenues.
4. Cash repayments of amounts borrowed.

Options

• (i), (ii), and (iii)

• (i) and (iii)

• (i), (iii) and (iv)

• (iii) and (iv)

Answer 1

(i), (ii), and (iii)

Explanation:

Dividend received from investments in other enterprises is a cash inflow from investing activities, while repayment of borrowed amounts in cash represents a cash outflow from financing activities.