The activities that are included in the operating activities section of the statement of cash flows are ________.

Question

Quizplus · Accepted Answer

The activities included in the operating activities section of the statement of cash flows are those that create revenue or expenses. These activities are related to the primary activities of the business, such as sales of goods or services, purchase of inventory, and payment of salaries and wages. The operating activities section does not include activities related to obtaining cash to launch or sustain the business, construction of new facilities, or increasing or decreasing long-term assets. These would generally be included in the investing activities or financing activities sections of the statement of cash flows.

The Activities That Are Included in the Operating Activities Section