Which one of the following is representative of typical cash flows from operating activities?
A) Proceeds from collecting the principal amounts of loans.
B) Repayment of principals on loans.
C) Proceeds from the issuance of bonds and notes payable.
D) Payments by a merchandiser to acquire equity securities of other companies.
E) Receipts of cash sales.

Question

Quizplus · Accepted Answer

Receipts from cash sales are a typical cash flow from operating activities, as it represents revenue earned from the sale of goods or services. Option A represents a cash inflow from investing activities, while option B represents a cash outflow from financing activities. Option C represents a cash inflow from financing activities, and option D represents a cash outflow from investing activities.

Which One of the Following Is Representative of Typical Cash