An accounting firm provides services for a client and sends the client a bill.This is an example of a(n):
A)operating activity
B)investing activity
C)financing activity
D)planning activity

Question

Quizplus · Accepted Answer

Providing services and billing for them is a part of the accounting firm's regular operations, which makes it an operating activity. Investing activities involve purchasing and selling long-term assets or investments, while financing activities involve obtaining and repaying funds for the business's operations. Planning activities involve making strategic decisions about the business's future direction, which is not applicable in this scenario.

An Accounting Firm Provides Services for a Client and Sends