Which of the following is excluded from operating cash flows?

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Master the UCF ACG2021 Principles of Financial Accounting Final Exam. Study with comprehensive practice tests, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

Dividends paid are excluded from operating cash flows because they are classified under financing activities. Operating cash flows specifically relate to the cash transactions that are part of the company's core business operations, which include cash receipts from customers, payments to suppliers, and payments to employees. These activities are integral to determining how much cash is being generated or used in day-to-day operations.

Dividends paid represent a return of profit to shareholders and are not tied directly to the operational efficiency or profitability of the business itself. Thus, they fall under a different category that reflects how a company manages its equity and financing rather than its operational cash generation capabilities. Understanding this distinction is crucial in analyzing cash flow statements correctly and assessing the health of a business's cash generation from its core activities.