Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
A) Direct activities.
B) Indirect activities.
C) Financing activities.
D) Operating activities.
E) Investing activities.

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day business operations of producing or purchasing merchandise and selling goods and services to customers, as well as the necessary administrative expenses to operate the business.

Activities That Involve the Production or Purchase of Merchandise and the Sale