CFA Practice Question

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CFA Practice Question

Which of the following would not appear in the operating activities section of the statement of cash flows?

A. Cash collected from customers for goods and services
B. Cash payments to employees for salaries, wages, benefits, etc.
C. Cash payments for income taxes
D. Cash payments made on borrowings (repaying the amounts borrowed)
Correct Answer: D

Cash transactions relating to a firm's own debt or equity are classified as financing activities, according to SFAS No. 95. Note that D does not include interest payments!

User Contributed Comments 1

User Comment
bravoshieh D does not include interest payments!
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