Which of the following is a cash inflow from an operating activity on a statement of cash flows prepared using the direct method?
A) sold treasury stock for cash
B) issued common stock
C) received interest revenue in cash
D) borrowed money on a long-term note

Question

Quizplus · Accepted Answer

Receiving interest revenue in cash is a cash inflow from an operating activity because it is a result of the company's normal, day-to-day operations. Selling treasury stock for cash is a financing activity, issuing common stock is a financing activity, and borrowing money on a long-term note is an investing activity.

Which of the Following Is a Cash Inflow from an Operating