Those transactions dealing primarily with selling a product or providing a service related to the revenues and expenses reported on the income statement are called
A) investing activities.
B) operating activities.
C) financing activities.
D) planning activities.

Question

Quizplus · Accepted Answer

Operating activities refer to transactions related to selling products or services, which are directly tied to the revenues and expenses reported on the income statement. Investing activities involve the buying or selling of long-term assets like property, plant, and equipment, while financing activities involve transactions related to raising funds for the business such as issuing stock or taking out loans. Planning activities are not a category of financial transactions.

Those Transactions Dealing Primarily with Selling a Product or Providing