Cash paid for merchandise is an operating activity.

Name: Cash paid for merchandise is an operating activity.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

Cash paid for merchandise is considered an operating activity because it is a cash outflow directly related to the primary business operations of purchasing inventory to sell to customers. Operating activities are the cash inflows and outflows that arise from the normal operations of a business.

Cash Paid for Merchandise Is an Operating Activity