Which of the following is not an operating activity?
A) Paying off a loan to the bank
B) Receiving cash from customers for services rendered
C) Paying employees for work completed
D) Billing customers for services rendered but not yet paid for

Question

Quizplus · Accepted Answer

Paying off a loan to the bank is a financing activity, not an operating activity. Operating activities are related to the day-to-day operations of the business, such as generating revenue, paying for expenses, and managing inventory. Financing activities involve raising and repaying funds, such as obtaining a loan or issuing stock.

Which of the Following Is Not an Operating Activity