In order to assess an entity's cash performance it is common to classify its activities into operating, investing and financing. For a local soccer club, which of the following would be an operating activity?
A) Receipt of membership fees from players.
B) Purchasing new soccer goals for all fields and age groups.
C) Repaying a loan for the clubhouse.
D) Purchasing a new coffee machine for the clubhouse.

Question

Quizplus · Accepted Answer

Receipt of membership fees from players is an operating activity as it relates to the primary source of the club's revenue, which is the participation in soccer activities.

In Order to Assess an Entity's Cash Performance It Is