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.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → B, C and D only
Operating activities are the main revenue-producing activities of the business.
(A) Payment of Dividend — False. It is a financing outflow.
(B) Payment of employee benefit expenses — True. An operating outflow.
(C) Payment of taxes — True. Tax on operating profit is an operating outflow.
(D) Purchase of Inventory from suppliers — True. An operating outflow.
(E) Purchase of furniture for cash — False. Buying a fixed asset is an investing outflow.
NCERT (2026-27 edition):
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