2A1C WHICH ONE OF THE FOLLOWING SHOULD BE CLASSIFIED AS AN OPERATING...

15.

CSO: 2A1d

LOS: 2A1c

Which one of the following should be classified as an operating activity on the statement

of cash flows?

a.

A decrease in accounts payable during the year.

b.

An increase in cash resulting from the issuance of previously authorized common

stock.

c.

The purchase of additional equipment needed for current production.

d.

The payment of a cash dividend from money arising from current operations.