Which of the following is not considered an operating activity?
A) interest earned on short-term investments
B) sale of inventory
C) dividends received on investments in shares
D) dividends paid to shareholders

Question

Quizplus · Accepted Answer

Operating activities are the principal revenue-producing activities of the entity and other activities that are not investing or financing activities. Dividends paid to shareholders are considered financing activities, not operating activities, as they relate to the financing of the enterprise itself rather than its core operations.

Which of the Following Is Not Considered an Operating Activity