Which of the following items is classified as part of 'operating activities' in the Statement of Cash Flows?
A) Bad debts expense.
B) Depreciation of non-current assets.
C) Proceeds from the sale of non-current assets.
D) Receipts from customers from the sale of goods.

Question

Quizplus · Accepted Answer

Receipts from customers from the sale of goods are considered part of operating activities because they represent cash inflows from the company's primary business operations. Bad debts expense and depreciation of non-current assets are both considered part of non-operating activities, and proceeds from the sale of non-current assets are part of investing activities.

Which of the Following Items Is Classified as Part of 'Operating