We can identify operating activities from income statement information and changes in
A)Long-term asset accounts.
B)Long-term liability accounts.
C)Current asset and current liability accounts.

Question

Quizplus · Accepted Answer

Operating activities are the primary activities of a business that generate revenue and incur expenses. They involve the company's current assets and liabilities, such as accounts receivable, inventory, accounts payable, and salaries payable. The changes in these accounts can help identify the company's operating activities. Long-term asset and liability accounts, on the other hand, are related to investing and financing activities.

We Can Identify Operating Activities from Income Statement Information and Changes