________ cash flows arise from intracompany and intercompany receivables and payments, while ________ cash flows are payments for the use of loans and equity.
A) Financing; operating
B) Operating; financing
C) Operating; accounting
D) Accounting; financing

Question

Quizplus · Accepted Answer

Operating cash flows arise from day-to-day business operations such as the sale of goods or services, while financing cash flows are related to the company's financing activities such as payments for the use of loans and equity. Intracompany and intercompany receivables and payments are considered part of operating cash flows as they are directly related to the company's core business operations.

________ Cash Flows Arise from Intracompany and Intercompany Receivables and Payments