Operating cash inflows and outflows are primarily connected to which of the following?
A)acquisitions and sale of long lived assets
B)the sale of goods and services to customers and costs incurred to operate the business
C)issuance of shares,bank borrowings and repayments,and dividend payments
D)purchase and sale of long-term investments

Question

Quizplus · Accepted Answer

Operating cash inflows and outflows are related to the day-to-day operations of a business, which involve the sale of goods and services to customers and the corresponding costs incurred to operate the business, such as salaries and wages, rent, utilities, and supplies. Acquisitions and sales of long-lived assets (A) involve investing activities, while the purchase and sale of long-term investments (D) are related to financing activities. Issuance of shares, bank borrowings and repayments, and dividend payments (C) are also financing activities.

Operating Cash Inflows and Outflows Are Primarily Connected to Which