Cash from operating activities includes ________.
A)all cash receipts and all cash disbursements for long-term business assets
B)all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners
C)all cash receipts and cash disbursements for routine sales and payments made in the course of doing business
D)detailed estimates of the sources of cash and uses of cash

Question

Quizplus · Accepted Answer

Cash from operating activities refers to the cash generated or used in the normal course of business operations. Therefore, it includes all cash receipts and disbursements related to routine sales and payments made in the course of doing business such as salaries, rent, purchases of inventory, etc. Options A and B relate to non-operating activities such as purchases of long-term assets or contributions from owners, and option D refers to cash forecasting which is not a part of actual cash flows generated from operations.

Cash from Operating Activities Includes ________