How many of the following transactions would affect operating cash flows reported in the statement of cash flows (all transaction involve cash)?
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.

Question

How many of the following transactions would affect operating cash flows reported in the statement of cash flows (all transaction involve cash)? 
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.

Quizplus · Accepted Answer

The three transactions that would affect operating cash flows reported in the statement of cash flows are: 
- Provide services to customers for $27,000 (cash inflow from operating activities)
- Paid the utility bill of $750 (cash outflow from operating activities)
- Purchased $12,000 in supplies (cash outflow from operating activities) 
Borrowing from the bank, issuing common stock, and purchasing a delivery truck are all financing or investing activities and would not affect operating cash flows.

How Many of the Following Transactions Would Affect Operating Cash