Operating cash flows generally include cash transactions for the purchase and sale of investments and long-term assets.These are investing activities.

Question

Quizplus · Accepted Answer

Operating cash flows do not include cash transactions for the purchase and sale of investments and long-term assets, as those are considered investing activities. Operating cash flows are related to the day-to-day operations of the business, such as cash received from customers and payments made to suppliers.

Operating Cash Flows Generally Include Cash Transactions for the Purchase