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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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