The cash effects of transactions that create revenues and expenses are
A) financing activities.
B) investing activities.
C) operating activities.
D) processing activities.

Question

Quizplus · Accepted Answer

The cash effects of transactions that create revenues and expenses are considered to be part of the operating activities of a company, as they relate to the base operations of the business. Financing activities relate to the raising and repaying of capital, while investing activities relate to the acquisition and sale of long-term assets. Processing activities is not a recognized category in accounting.

The Cash Effects of Transactions That Create Revenues and Expenses