BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Cash payments for salaries are reported in what section of the statement of cash flows?
A
operating
B
investing
C
financing
D
none of the above
Explanation: 

Detailed explanation-1: -cash payments for salaries. Feedback: The operating activities section of the cash flow statement includes the day-to-day activities reported on the income statement. Salaries are a prime example of this type of activity.

Detailed explanation-2: -Examples of the direct method of cash flows from operating activities include: Salaries paid out to employees. Cash paid to vendors and suppliers. Cash collected from customers.

Detailed explanation-3: -Salaries and wages are presented within the cash payments section of the operating cash flows section of a cash flow statement.

Detailed explanation-4: -The cash flow from operations is the first section of the cash flow statement and includes money that goes into and out of a company. Net income, adjustments to net income, and changes to working capital are included in operating cash flows.

Detailed explanation-5: -Cash flows from operating activities result from providing services and producing and delivering goods. They include all other transactions not defined as noncapital financing, capital and related financing or investing activities.

There is 1 question to complete.