Which of the following would not be classified as an operating activity? a) Interest income b) Income tax expense c) Dividend income d) Payment of dividends | Homework.Study.com (2024)

Business Accounting Operating cash flow

Question:

Which of the following would not be classified as an operating activity?

a) Interest income

b) Income tax expense

c) Dividend income

d) Payment of dividends

Operating Cash Flow:

Operating cash flow refers to the income that an organization generates from its normal operations. Every company should be able to generate adequate cash flow, which is used in maintaining its operations.

Answer and Explanation:1

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d. Payment of dividends would not be classified as an operating activity. An Operating activity is any activity in an organization that helps to...

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Which of the following would not be classified as an operating activity? a) Interest income b) Income tax expense c) Dividend income d) Payment of dividends | Homework.Study.com (2024)

FAQs

Which of the following would not be classified as an operating activity? a) Interest income b) Income tax expense c) Dividend income d) Payment of dividends | Homework.Study.com? ›

Answer and Explanation:

Which of the following would not be classified as an operating activity? ›

Answer. Payment of Dividends is not classified as an operating activity because it is considered a financing activity since dividends are distributions of earnings to shareholders and not tied to the operational earnings and expenses of the company.

Which of the following is not considered with operating activities? ›

Cash received from sale of goods is not an operating activity.

Which of the following is not an operating activity for a company? ›

Interest and dividend income, while part of overall operational cash flow, are not considered to be key operating activities since they are not part of a company's core business activities.

Is interest expense an operating activity? ›

Interest and dividends received or paid are classified in a consistent manner as either operating, investing or financing cash activities. Interest paid and interest and dividends received are usually classified in operating cash flows by a financial institution. taxes are generally classified as operating activities.

Which activity is not part of operations? ›

Examples of non-operating activities include: Relocating the business. Expenses caused by weather damage. Acquiring another firm.

What are classified as operating activities? ›

Cash flows from operating activities result from providing services and producing and delivering goods. They include all other transactions not defined as noncapital financing, capital and related financing or investing activities. The operating activities section is, in a sense, a “catch-all” category.

Which one of the following is not operating activities? ›

Cash payments for dividends to shareholders. Neither of these are operating activities. Cash payments for dividends to shareholders are classified under financing activities.

Which of the following is not an operating expense? ›

Answer and Explanation:

The salaries expense, rent expense, and advertising expense are all considered to be part of the operating expenses. The interest expense is a non-operating expense, which means it is not involved in generating operating income.

What are examples of operating activities? ›

Operating activities examples include:
  • Receipt of cash from sales.
  • Collection of accounts receivable.
  • Receipt or payment of interest.
  • Payment for materials and supplies.
  • Payment of salaries.
  • Payment of principal and interest for operating leases. ...
  • Payment of taxes, fines, and license costs.
Apr 11, 2023

What is a non-operating activity? ›

A non-operating expense is a cost from activities that aren't directly related to core, day-to-day company operations. Examples of non-operating expenses include interest payments and one-time expenses related to the disposal of assets or inventory write-downs.

Which of the following is not an operating? ›

The correct answer is Oracle.

Which of the following is not a task of an operating system? ›

The correct answer is Execution of arithmetic operations. Execution of arithmetic operations is not a function of the operating system. Functions of the operating system: Manage all of the computer hardware inside your computer and all of the connected peripherals.

Is tax an operating expense? ›

Non-operating expenses are expenses that do not relate directly to the business's core operations. The most common examples of non-operating expenses are interest, taxes, depreciation and amortization.

Is interest income an operating expense? ›

Interest expense is a non-operating expense shown on the income statement.

What kind of activity is operating expense? ›

An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Which activity is not part of the operating cycle? ›

Explanation: The activity that is not a component of the operating cycle is Purchase of merchandise. The operating cycle consists primarily of three stages: purchase of inventory, sales of merchandise, and collection of accounts from credit sales.

Which one of the following should be classified as an operating activity? ›

Answer and Explanation: The correct answer is option a. Purchase of inventory. The purchase & sale of inventory is categorized as an operating activity because it belongs to the core operations of the firm.

Which of the following are operating activities? ›

Operating activities examples include:
  • Receipt of cash from sales.
  • Collection of accounts receivable.
  • Receipt or payment of interest.
  • Payment for materials and supplies.
  • Payment of salaries.
  • Payment of principal and interest for operating leases. ...
  • Payment of taxes, fines, and license costs.
Apr 11, 2023

Which of the following is not an operating asset? ›

Common non-operating assets include unallocated cash and marketable securities, loans receivable, idle equipment, and vacant land.

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