As used in the statement of cash flows, operating activities generally refer to transactions
A) that include the lending and collecting of loans receivable.
B) related to the production and delivery of goods and services by businesses.
C) that involve borrowing cash through short-term or long-term notes.
D) that include obtaining capital from owners and providing them with a return on, and a return of, their investment.
E) all of the above.

Question

Quizplus · Accepted Answer

Operating activities on the statement of cash flows typically involve transactions related to the primary operations of the business, such as the production and delivery of goods and services. Choices A, C, and D describe investing and financing activities, not operating activities.

As Used in the Statement of Cash Flows, Operating Activities