A firm's net cash flow from operating activities includes:
A) Cash received from sale of equipment
B) Cash received from issuance of common stock
C) Cash received from sale of merchandise
D) Cash received as payment of loan from a borrower

Question

Quizplus · Accepted Answer

C) Cash received from sale of merchandise is considered a part of a firm's net cash flow from operating activities, as it directly relates to the primary revenue-generating activities of the business. Choices A, B, and D are related to investing and financing activities, not operating activities.

A Firm's Net Cash Flow from Operating Activities Includes