Which of the following describes the operating activities section of the statement of cash flows?
A)It includes cash transactions that essentially increase or decrease the long-term assets of a business.
B)It includes cash transactions affecting the capitalization of the business.
C)It includes cash transactions that primarily affect current assets and current liabilities.
D)It shows the beginning and ending balances of cash.

Question

Quizplus · Accepted Answer

The operating activities section of the statement of cash flows includes cash transactions that primarily affect current assets and current liabilities, such as sales revenue, expenses, and changes in inventory and accounts receivable.

Which of the Following Describes the Operating Activities Section of the Statement