Which of the following are cash outflow from Operating Activities?

A. Payment of Dividend

B. Payment of employee benefit expenses

C. Payment of taxes

D. Purchase of Inventory from suppliers

E. Purchase of furniture for cash.

Choose the correct answer from the options given below.

B, C and D only

The correct answer is option 4- B, C and D only

A. Payment of Dividend- This is a financing activity. It involves a cash outflow used to distribute profits to shareholders. It directly affects the company's capital structure and financing arrangements.

B. Payment of employee benefit expenses- This is operating activity. It represents a cash outflow incurred as part of regular business operations to compensate employees. It's considered an essential expense for running the day-to-day operations of the company.

C. Payment of taxes- This is operating activity. It's a cash outflow related to the company's tax obligations arising from its core business operations. It's a direct expense associated with generating revenue.

D. Purchase of Inventory from suppliers- This is operating activity. It represents a cash outflow necessary to acquire goods that will be sold to customers in the ordinary course of business. Inventory is a crucial element for generating revenue through sales.

E. Purchase of furniture for cash- This is a investing activity. It involves a cash outflow for acquiring a long-term asset (furniture) that will be used for future benefits in the company's operations. It's an investment in the company's property and equipment.