We can identify operating activities from income statement information and changes in

Question

Quizplus · Accepted Answer

Operating activities involve transactions and events that relate to a company's primary business operations. Current asset and current liability accounts represent items that are directly related to a company's operating activities, such as sales, expenses, and payments to suppliers. Long-term asset and liability accounts generally reflect financing and investing activities, which are not considered operating activities. Stockholders' equity accounts represent transactions related to financing activities, such as issuing or repurchasing shares of stock.

We Can Identify Operating Activities from Income Statement Information and Changes