Operating activities typically involve balance sheet accounts classified as:
A)current assets and current liabilities.
B)current assets and long-term liabilities.
C)long-term assets and current liabilities.
D)long-term assets and long-term liabilities.

Question

Quizplus · Accepted Answer

Operating activities are related to the day-to-day operations of a business and involve transactions that affect current assets and current liabilities. Examples of operating activities include sales revenue, cash received from customers, payments to suppliers, and salaries paid to employees. Therefore, choice A is the best answer as it includes both current assets and current liabilities.

Operating Activities Typically Involve Balance Sheet Accounts Classified As