A cash inflow from operating activities includes which of the following?
A)collection of the principal of a loan.
B)collection of sales price of equipment used in operations of the business.
C)proceeds from issuance of notes payable.
D)receipt of interest on an investment.

Question

Quizplus · Accepted Answer

A cash inflow from operating activities includes cash received from the ongoing business operations, such as sales revenue, receipts from customers, and interest received on investments that are part of the normal course of business. Collection of the principal of a loan and proceeds from issuance of notes payable are financing activities, while collection of sales price of equipment used in operations of the business is an investing activity.

A Cash Inflow from Operating Activities Includes Which of the Following