Which one of the following transactions increases or decreases the net cash flow from operating activities?
A.Sale of a non-current asset
B. Drawing cash from the business for personal use by the owner
A)Both of them
B)Neither of them
C)A only
D)B only

Question

Which one of the following transactions increases or decreases the net cash flow from operating activities? 
A.Sale of a non-current asset
B. Drawing cash from the business for personal use by the owner
A)Both of them
B)Neither of them
C)A only
D)B only

Quizplus · Accepted Answer

Neither of the transactions directly affects the net cash flow from operating activities. The sale of a non-current asset is an investing activity, and drawing cash for personal use is a financing activity.

Which One of the Following Transactions Increases or Decreases the Net