This question was previously asked in
Shift 16/06/2023 3:30 PM - 6:30 PM
Correct Answer
A. Payment of Dividend: This is a cash outflow, but it falls under Financing Activities in the cash flow statement, not Operating Activities.
B. Payment of employee benefit expenses: This is a cash outflow directly related to the day-to-day operations of a business, so it is part of Operating Activities.
C. Payment of taxes: Paying taxes is also a cash outflow related to the core operations of a business and is classified as part of Operating Activities in the cash flow statement.
D. Purchase of Inventory from suppliers: This is a cash outflow related to acquiring goods for sale, which is part of a company's core operations and falls under Operating Activities.
E. Purchase of furniture for cash: This is a capital expenditure, not directly related to the day-to-day operations, so it typically falls under Investing Activities rather than Operating Activities.
So, the correct answer is 4. B, C, and D only, as these are the cash outflows directly associated with Operating Activities.
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