An example of a cash inflow from operating activities is
A) cash received from the sale of merchandise.
B) proceeds from the sale of productive assets.
C) proceeds from discounting notes receivable.
D) proceeds from additional investments by the owners.

Question

Quizplus · Accepted Answer

Cash received from the sale of merchandise is a typical cash inflow resulting from the operation of a business. It is considered an operating activity because it is the primary source of revenue for most businesses. The other choices, such as proceeds from the sale of productive assets or discounting notes receivable, relate to investing or financing activities.

An Example of a Cash Inflow from Operating Activities Is