The activities that are included in the operating activities section of the statement of cash flows are ________.
A) activities that involve stockholders' equity
B) activities that create revenue or expenses
C) activities that increase or decrease long-term assets
D) activities that pertain to construction of new facilities

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows includes activities that create revenue or expenses, such as sales to customers, payments to suppliers, and salaries to employees. It does not include activities related to stockholders' equity, long-term assets, or construction of new facilities. These would be included in the investing and financing activities sections.

The Activities That Are Included in the Operating Activities Section