Which of the following cash flows results from an operating activity?
A)Paying dividends to stockholders
B)Repaying a note payable
C)Receiving interest on an investment
D)Purchasing equipment for cash

Question

Quizplus · Accepted Answer

Receiving interest on an investment is a cash flow resulting from an operating activity. Operating activities are the primary activities of a business that generate revenue and incur expenses, such as selling goods or services, and receiving or paying for them. Interest received is considered an operating activity because it relates to the normal course of business operations.

Which of the Following Cash Flows Results from an Operating