Which of the following describes the operating activities section of the statement of cash flows?
A)It reports cash receipts and cash payments that increase or decrease long-term assets.
B)It includes cash inflows and outflows involved in long-term liabilities and equity.
C)It reports on activities that create revenue or expenses for the entity's business.
D)It reports on how cash flows affect the total assets and total liabilities.

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows reports on the cash inflows and outflows involved in revenue and expenses for the entity's business, such as sales, purchases, and operating expenses. This section does not include long-term assets or liabilities, which are reported in the investing and financing activities sections, respectively.

Which of the Following Describes the Operating Activities Section of the Statement