An example of an operating activity is
A)repaying loan principal.
B)paying dividends.
C)purchase of shares of other companies.
D)payments of taxes owed to the government.

Question

Quizplus · Accepted Answer

Operating activities are the day-to-day activities of a company that generate revenue and incur expenses. One example of an operating activity is payments of taxes owed to the government, which is a normal part of a company's operations. Repaying loan principal and paying dividends are financing activities, while purchasing shares of other companies is an investing activity.

An Example of an Operating Activity Is