Operating activities include long-term borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.

Question

Quizplus · Accepted Answer

Operating activities typically include day-to-day business transactions such as sales, purchases, and expenses, as well as receiving and paying cash for these activities. Long-term borrowing and owner investments/withdrawals generally fall under financing activities.

Operating Activities Include Long-Term Borrowing and Repaying Cash from Lenders