Which of the following is an operating activity?
A)Issuing common stock.
B)Paying dividends.
C)Borrowing cash from a bank to acquire a factory.
D)Paying electricity bills for the month.

Question

Quizplus · Accepted Answer

Paying electricity bills for the month is a typical operating activity because it involves the day-to-day functioning of the business, which is generating electricity and paying for it. The other choices are not operating activities; issuing common stock is a financing activity, paying dividends is a financing or investing activity, and borrowing cash from a bank to acquire a factory is an investing activity.

Which of the Following Is an Operating Activity