English

Which one is Cash Outflows from operating activities? -

Advertisements
Advertisements

Question

Which one is Cash Outflows from operating activities?

Options

  • Cash receipts from sale of goods and the rendering of services.

  • Cash receipts from royalties, fees, commissions and other revenues.

  • Cash payments to suppliers for goods and services

  • None of the above

MCQ

Solution

Cash payments to suppliers for goods and services

Explanation:

Cash Outflows from operating activities are:

  1. Cash payments to suppliers for goods and services.
  2. Cash payments to and on behalf of the employees.
  3. Cash payments to an insurance enterprise for premiums .and claims, annuities, and other policy benefits.
  4. Cash payments or refunds of income taxes unless they can be specifically identified with financing and investing activities
    The net position is shown in case of operating cash flows.
    Some transactions, such as the sale of a plant, may result in a gain or loss that is factored into the net profit or loss calculation.
shaalaa.com
  Is there an error in this question or solution?
Advertisements
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×