Activities that involve the production or delivery of goods for sale or the providing of services for sale should be listed under which classification on a cash flow statement?
A) Operating activities
B) Investing activities
C) Financing activities
D) Refunding activities

Question

Quizplus · Accepted Answer

Activities that involve the production or delivery of goods for sale or the providing of services for sale are classified as operating activities on a cash flow statement. This includes the cash inflows and outflows related to the day-to-day operations of the business, such as sales revenue, operating expenses, and taxes. Investing activities relate to the purchase or sale of long-term assets, while financing activities involve the raising or repayment of capital. Refunding activities is not a recognized classification on a cash flow statement.

Activities That Involve the Production or Delivery of Goods for Sale