Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business are
A)Operating activities
B)Investing activities
C)Financing activities
D)Direct activities
E)Indirect activities

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day activities of a business, which include the production or purchase of merchandise, sales of goods and services, and related expenses to administer the business. This is the best choice as it clearly describes the activities mentioned in the question. Investing activities relate to the purchase and sale of long-term assets, while financing activities involve raising capital through debt or equity. Direct and indirect activities are not commonly used accounting terms.

Activities That Involve the Production or Purchase of Merchandise and the Sale