Operating Cash Flows Would Include Which Of The Following? (Choose All That Apply.)
Cash flows from operating activities show that cash is generated (inflows) or used (outflows) from normal business operations over a specified accounting period. When cash is received from such activities i.e., during daily working activities of business, there is cash inflow or cash is increasing. On the other hand, when it is paid due to such activities, then there are outflows which means cash is decreasing. These activities include cash received from customers (inflows) and cash paid to creditors or suppliers or employees (outflows). The correct options of this multiple choice question are (D) and (G), as cash paid for prepaid rent is related with the operations of the business and payment of salaries is also related with the operating activities of employees working in the business property. These are the cash outflows as the cash is going out of the business, so these are increased and cash is decreasing, so these are deducted from Net Income in Statement of Cash Flows . ...