Which one of the following is representative of typical cash flows from operating activities?
A)Proceeds from collecting the principal amount of loans.
B)Repayment of principal on loans.
C)Proceeds from the issuance of bonds and notes payable.
D)Payments by a merchandiser to acquire equity securities of other companies.
E)Receipts of cash sales.

Question

Quizplus · Accepted Answer

Receipts from cash sales are a typical cash flow from operating activities. A company's core business operations generate cash inflows from customers paying for products or services rendered. Other options listed relate to financing or investing activities, not operating activities.

Which One of the Following Is Representative of Typical Cash