How many of the following transactions are operating activities?
Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock
A)One.
B)Two.
C)Three.

Question

How many of the following transactions are operating activities? 
Borrowed $50,000 from the bank
Purchased $12,000 in supplies
Provide services to customers for $27,000
Paid the utility bill of $750
Purchased a delivery truck for $12,000
Received $25,000 from issuing common stock
A)One.
B)Two.
C)Three.

Quizplus · Accepted Answer

Operating activities are the day-to-day activities that generate revenue and incur expenses. Borrowing from the bank and issuing common stock are financing activities. Purchasing supplies and a delivery truck are investing activities. Providing services to customers and paying utility bills are operating activities. Therefore, three of the transactions (purchasing supplies, providing services to customers, and paying the utility bill) are operating activities.

How Many of the Following Transactions Are Operating Activities