On the statement of cash flows (direct method), cash received from selling merchandise would be considered a:
A)cash inflow from investing activities.
B)cash inflow from operating activities.
C)cash outflow from financing activities.
D)cash outflow for financing activities.

Question

Quizplus · Accepted Answer

Cash received from selling merchandise is part of a company's operating activities because it represents the primary revenue-generating activity of the business.

On the Statement of Cash Flows (Direct Method), Cash Received