Which of the following describes the operating activities as shown in the cash flow statement?
A) includes increases and decreases in long-term assets
B) includes transactions affecting the capitalization of the business
C) includes transactions that primarily impact current assets and current liabilities
D) shows the beginning and ending balance of cash

Question

Quizplus · Accepted Answer

Operating activities on the cash flow statement include transactions that impact current assets and current liabilities, such as cash received from customers, payments to suppliers, and payment of salaries and other operating expenses. This section does not include changes in long-term assets or transactions affecting the capitalization of the business. The beginning and ending balance of cash is shown on the cash flow statement, but this is not specific to the operating activities section.

Which of the Following Describes the Operating Activities as Shown