Operating activities result from the cash effects of
A)producing and delivering goods and services.
B)purchasing and disposing of fixed assets used in production of revenue.
C)borrowing and repaying loans used in the production of revenue.
D)selling stocks and bonds to raise capital for the generation of revenue.

Question

Quizplus · Accepted Answer

Operating activities refer to the core business activities of a company, which involves producing and delivering goods and services. These activities generate cash inflows and outflows that are reported in the operating section of the statement of cash flows. Options B, C, and D refer to investing and financing activities, respectively.

Operating Activities Result from the Cash Effects of