Which of the following is included in operating activities?
A) An increase in long-term debt
B) An increase in equity
C) An increase in accounts receivable
D) All of these.

Question

Quizplus · Accepted Answer

Operating activities involve the day-to-day business operations of a company, such as sales, purchases, and payments. An increase in accounts receivable is a result of selling on credit to customers, which is an operating activity. An increase in long-term debt (financing activity) or an increase in equity (investment activity) do not pertain to operating activities.

Which of the Following Is Included in Operating Activities