How many of the following transactions are operating activities? Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock
A)One.
B)Two.
C)Three.
D)Four.

Question

Quizplus · Accepted Answer

- Borrowing $50,000 from the bank is a financing activity.
- Purchasing $12,000 in supplies is an operating activity.
- Providing services to customers for $27,000 is an operating activity.
- Paying the utility bill of $750 is an operating activity.
- Purchasing a delivery truck for $12,000 is an investing activity.
- Receiving $25,000 from issuing common stock is a financing activity.

Therefore, there are three operating activities: purchasing supplies, providing services, and paying utility bills.

How Many of the Following Transactions Are Operating Activities? Borrowed