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Operating cash flows would include which of the following?

Multiple Choice
a.Receipt of cash from bank borrowing.
b.Payment of dividends to stockholders.
c.Receipt of cash from selling a building.
d.Payment for prepaid insurance.

User Aroyc
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1 Answer

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Final answer:

Operating cash flows relate to transactions that are part of a company's core business activities. In the provided options, payment for prepaid insurance is included in operating cash flows, while the other options represent investing and financing activities.

Step-by-step explanation:

Operating cash flows in a company include transactions that relate to the day-to-day business operations of the firm. These are the money in-and-out movements involved in the company's core business activities. Receipt of cash from bank borrowing is considered a financing activity, payment of dividends to stockholders falls under financing activities, receipt of cash from selling a building is an investing activity, and payment for prepaid insurance would indeed be part of operating cash flows as it represents a payment for an operating expense.

User Dmitry Mugtasimov
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