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Which activities are classified as operating activities in a cash flow statement?
  • a)
    Cash receipts from the sale of goods and services.
  • b)
    Cash payments to acquire fixed assets.
  • c)
    Cash proceeds from issuing shares.
  • d)
    Cash receipts and payments related to future contracts.
Correct answer is option 'A'. Can you explain this answer?
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Which activities are classified as operating activities in a cash flow...
Operating activities in a cash flow statement include cash receipts from the sale of goods and services, cash receipts from royalties and other revenues, cash payments to suppliers for goods and services, cash payments to employees, and cash receipts and payments of an insurance enterprise for premiums and claims. These activities are directly related to the principal revenue-producing activities of the enterprise.
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Which activities are classified as operating activities in a cash flow statement?a)Cash receipts from the sale of goods and services.b)Cash payments to acquire fixed assets.c)Cash proceeds from issuing shares.d)Cash receipts and payments related to future contracts.Correct answer is option 'A'. Can you explain this answer?
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