Operating activities are concerned with:
A) the trading and/or service operations of the business.
B) borrowing or lending.
C) the sale or disposal of non-current assets.
D) none of the above.

Question

Quizplus · Accepted Answer

Operating activities are those activities that are involved in the day-to-day operations of the business and are related to the production and sale of goods and services. These include activities such as sales, purchases of inventory, and payment of operating expenses. Borrowing or lending (option B) would fall under financing activities, while the sale or disposal of non-current assets (option C) would be considered investing activities. Option D is incorrect as operating activities are a fundamental aspect of any business.

Operating Activities Are Concerned With