Which of the following operating activities results in a cash outflow?
A)Paying creditors for merchandise
B)Collecting accounts receivable
C)Making cash sales
D)Receiving deposits recorded as unearned revenue

Question

Quizplus · Accepted Answer

Paying creditors for merchandise requires a company to use cash to pay its debts, resulting in a cash outflow. Collecting accounts receivable, making cash sales, and receiving deposits recorded as unearned revenue are all examples of cash inflows from operating activities.

Which of the Following Operating Activities Results in a Cash