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On the statement of cash flows, payments of accounts payable, taxes payable, and wages payable are...

On the statement of cash flows, payments of accounts payable, taxes payable, and wages payable are considered cash flows related to:

investing activities.

none of the above.

financing activities.

operating activities.

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Answer #1

Correct answer-----------operating activities.

.

Payments of accounts payable, taxes payable, wages payable, Receipt of cash from customers etc are considered cash flows related to operating activities where as payment for purchase of non current assets and sale of non current asset is reported as investing activities. Payment to stockholder's for dividend and receipt of cash from loan or owners is considered financing activities.

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