Operating activities:
A) Are the means organizations use to pay for resources like land, buildings and equipment.
B) Involve using resources to research, develop, purchase, produce, distribute and market products and services.
C) Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services.
D) Are also called asset management.
E) Are also called strategic management.

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day operations of a business, such as researching, developing, purchasing, producing, distributing, and marketing products or services. This is the core business activity that generates revenue and incurs expenses.

Answer: C
 Acquiring and disposing of resources that a business uses to acquire and sell its products or services are also considered operating activities. This includes activities such as purchasing raw materials, manufacturing products, and selling them to customers.

Options A, D, and E are incorrect because:

A) Organizations use financing activities to pay for resources like land, buildings, and equipment.
D) Asset management is a broader term that includes managing all types of assets, including non-operating assets like investments.
E) Strategic management is the process of setting goals, making plans, and allocating resources to achieve those goals, but it is not synonymous with operating activities.

Operating Activities