As a general rule,operating cash flows affect
A)noncurrent assets and liabilities.
B)current assets and current liabilities.
C)noncurrent liabilities or shareholders equity.
D)noncurrent assets.

Question

Quizplus · Accepted Answer

Operating cash flows are related to the day-to-day operations of a business, which involve current assets and current liabilities such as cash, accounts receivable, accounts payable, and inventory. Therefore, operating cash flows affect current assets and current liabilities.

As a General Rule,operating Cash Flows Affect