Operating activities in a Statement of Cash Flows are generally associated with:
A) changes in equity of an entity.
B) revenues and expenses of an entity.
C) acquisitions of non-current assets of an entity.
D) movements in non-current liabilities of an entity.

Question

Quizplus · Accepted Answer

Operating activities in a Statement of Cash Flows are generally associated with revenues and expenses of an entity. This includes cash inflows and outflows from normal business operations, such as sales and payments to suppliers and employees. Changes in equity (A), acquisitions of non-current assets (C), and movements in non-current liabilities (D) are typically associated with investing and financing activities in a Statement of Cash Flows.

Operating Activities in a Statement of Cash Flows Are Generally