Operating activities include:
A)changes in accounts receivable.
B)purchases of plant and equipment for cash.
C)issuance of common stock.
D)payment of dividends to shareholders.

Question

Quizplus · Accepted Answer

Operating activities involve day-to-day transactions such as sales and purchases, changes in accounts receivable, and expenses related to running a business. B is incorrect as it pertains to investing activities, C is incorrect as it pertains to financing activities, and D is incorrect as it pertains to both financing and investing activities.

Operating Activities Include