The sale of a good or service is classified in the statement of cash flows as a(n):
A)Investing activity.
B)Operating activity.
C)Financing activity.

Question

Quizplus · Accepted Answer

The sale of a good or service is the primary source of operating revenue for a company, and therefore classified as an operating activity in the statement of cash flows. Investing activities refer to the purchase and sale of long-term assets, while financing activities relate to the company's borrowing and equity transactions.

The Sale of a Good or Service Is Classified in the Statement