in a statement of cash flows, which of the following events would not be classified as an operating acctivity?

a) purchase of a trading security  -------------------Financing

b) receipt of a chas dividend       ----------   financing

c) payment of interst on a bond issue  ------------------  _ operating

d) proceeds from the sale, at a gain, of aa available for sale security----------------  finincing.

 

i would say B too

thankx guys...

but the answer was D...

when confused like this...always remember longest answers are usually the right ones

hehe..

ya my prof also used to tell me this... so whenever i m confused i always search for the long option.

ok.. the problem with the question is, what type of company u r working on to make a cash statement is?
for a trading company, a) would be b classified as an operating activity
for a mutual fund, c) would be included as an OA
for merchandise company, d) would be an OA