Which of the following best describes a company's operating activities?
A)Operating activities are cash flows directly related to earning income.
B)Operating activities are necessary to provide the money to start a business.
C)Operating activities are needed to provide the valuable assets required to run a business.
D)Operating activities represent the right to receive a benefit in the future.

Question

Quizplus · Accepted Answer

Operating activities are cash flows directly related to earning income. These activities include revenue and expenses, such as sales to customers, salaries and wages paid to employees, and costs of goods sold.

Which of the Following Best Describes a Company's Operating Activities