Operating activities on the statement of cash flows include activities that affect net income, current liabilities and current assets.

Question

Quizplus · Accepted Answer

Operating activities on the statement of cash flows are those activities that involve the day-to-day business operations that impact net income (revenues and expenses), current liabilities (such as accounts payable) and current assets (such as accounts receivable). Examples of operating activities include sales of goods or services, payment of wages and salaries, and payment of suppliers.

Operating Activities on the Statement of Cash Flows Include Activities