Transactions related to the primary business activities of the company, such as selling goods and services to customers, are referred to as:
A) Investing activities.
B) Management activities.
C) Operating activities.
D) Financing activities.

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day business activities of a company, such as sales, production, and delivery of goods or services. This includes transactions related to revenue, inventory, accounts payable and receivable, and other expenses incurred in operating the business. Investing activities involve the purchase and sale of long-term assets such as property, plant, and equipment, while financing activities involve transactions related to borrowing, issuing stocks, or paying dividends. Management activities are not a recognized category in accounting.

Transactions Related to the Primary Business Activities of the Company