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    Question

    In the Cash Flow Statement, payment of taxes is

    classified under which activity?
    A Operating activity Correct Answer Incorrect Answer
    B Investing activity Correct Answer Incorrect Answer
    C Financing activity Correct Answer Incorrect Answer
    D Exceptional activity Correct Answer Incorrect Answer
    E Not included Correct Answer Incorrect Answer

    Solution

    Taxes paid are part of operating activities, as they relate to core business operations.

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