The receipt of cash is one of the operating activities of:
A)companies that sell goods but not companies that sell services.
B)companies that sell to consumers but not companies that sell to other companies.
C)merchandising,manufacturing,and service companies.
D)companies that sell goods they bought from others but not companies that make the goods they sell.

Question

Quizplus · Accepted Answer

The receipt of cash is a part of the operating activities of all types of companies, including merchandising, manufacturing, and service companies. Companies that sell goods they bought from others would also have receipts of cash from their sales. Therefore, options A, B, and D are incorrect.

The Receipt of Cash Is One of the Operating Activities