Question of the Week – Financial Reporting – Cash Flows

This is a poorly worded question. There is no mention of what reporting standard is being used (IFRS or US GAAP), which would make a difference in many cases. 

Cash tax payments are operating cash flows. Changes in debt is a financing cash flow. I and III are incorrect.

misread the question. “Correct” and “incorrect” is a big difference. 

I misread it too. My cat got in the way. I just got back from a 4 day trip for a CFA prep course. She hasn’t left my side since I got back. 

@shannondaily my cat would sit on my laptop/books if i don’t play with her or try to study…at one point i was considering hiding in the bathroom to study since she’s scared of bathtubs and wouldn’t follow me there