Operating activities include all except
A) collection of accounts receivable.
B) payment of wages.
C) decrease in accounts payable.
D) payment of dividends to shareholders.

Question

Quizplus · Accepted Answer

Operating activities refer to the day-to-day business activities that generate revenue and incur expenses, such as the collection of accounts receivable and the payment of wages. A decrease in accounts payable would also be considered an operating activity as it involves the payment of expenses. Payment of dividends to shareholders, on the other hand, is a financing activity as it involves distributing profits to the investors who provided capital to the company.

Operating Activities Include All Except