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

Question

Quizplus · Accepted Answer

Receipts of cash sales are a typical cash inflow from operating activities as they represent the revenue generated from the company's core business operations. Option A, B, and E are related to financing activities, while option C is related to investing activities.

Which One of the Following Is Representative of Typical Cash