Which of the following operating activities results in a cash outflow?
A)paying creditors for merchandise
B)collecting accounts receivable
C)making cash sales
D)receiving deposits recorded as unearned revenue

Question

Quizplus · Accepted Answer

Paying creditors for merchandise results in a cash outflow as cash is leaving the company to pay for the merchandise. Collecting accounts receivable, making cash sales, and receiving deposits recorded as unearned revenue all result in a cash inflow.

Which of the Following Operating Activities Results in a Cash