Which activity is not part of the operating cycle?
A)Repaying a bank loan used to purchase manufacturing equipment
B)Purchasing goods from suppliers for resale to customers
C)Paying employees for hours worked
D)Collecting cash from sales on account made last month

Question

Quizplus · Accepted Answer

Operating activities are the day-to-day functions involved in running a business.Operating activities include buying goods and services from suppliers,paying employees,and selling goods and services to customers and collecting cash from them.Repayment of a bank loan is a financing activity.

Which Activity Is Not Part of the Operating Cycle