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What is included in operating cash flows?

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The operating section of cash flow includes which of the following:

a. payments to employees
b. proceeds from sale of long term assets
c. payment to owners for stock
d. repayment of long term debt

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Solution Summary

Students often have trouble remembering what is operating, investing and financing cash flows. This question gives them practice on this and explains why.

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Answer: A

Operating cash flows include collections from customers and payments to vendors and employees. However, most cash flow statements use the indirect method of reporting so it is hard to remember how ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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