Question

Cash paid for which of the following activities would affect the amount reported for operating cash flows in the statement of cash flows?
Issuing common stock
Paying dividents

Answer 1

Answer:

Paying electricity bill for the month

Explanation:

The operating activities are shown in the cash flow statement. It has two methods

1. Direct method: The direct method records all those expenses related to the cash receipts and the cash payments  

2. Indirect method: The indirect method records that transactions that impacts the working capital that means a change in the working capital which would come after reporting the net income.  

So, the electricity bill is a cash payment that is to be reported in the operating activities.