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Inflow/outflow on what section of the SOCF?: To pay suppliers for goods and services

A. Operating activities
B. Investing activities
C. Financing activities
D. Non-operating activities

User Mstrand
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1 Answer

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Final answer:

Payments to suppliers for goods and services are recorded under Operating activities on the Statement of Cash Flows. The correct answer is option A.

Step-by-step explanation:

Payments made to suppliers for goods and services fall under Operating activities in the Statement of Cash Flows (SOCF). This section reflects transactions involving the primary revenue-producing activities of a business. Operating activities can include cash receipts from sales of goods and services.

Payments to suppliers, wages to employees, and other expenses involved in running the day-to-day business operations. Paying suppliers falls under this category as it is a regular expense necessary for the operation of the business.

Cash inflows and outflows in this section are related to the core business and do not encompass Investment income paid, which would relate more to the inflow and outflow of monies from investments in stocks, bonds, or international lending activities mentioned in the provided information.

User Alphaa
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