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

Question

Quizplus · Accepted Answer

Receipts of cash from sales are an example of cash flows from operating activities, as they represent the cash generated from the main operations of the business. Options A and B are examples of cash flows from investing activities, as they represent the cash flows related to the acquisition and disposal of long-term assets. Option C is an example of cash flows from financing activities, as it represents the cash flows related to the borrowing of long-term funds. Option D is also an example of cash flows from investing activities, as it represents the cash flows related to the acquisition of equity securities of other companies.

Which One of the Following Is an Example of Cash