Which balance sheet accounts are most affected by operating activities?

Question

Quizplus · Accepted Answer

Operating activities primarily involve transactions related to current assets and current liabilities, such as sales of inventory, payment of expenses, and collection of accounts receivable. Long-term assets and liabilities are typically more affected by investing and financing activities. Shareholders' equity can be affected by all activities but is not as directly impacted by operating activities as current assets and liabilities.

Which Balance Sheet Accounts Are Most Affected by Operating Activities