Question

Which of the following activities would be reflected in cash flows from operating activities? A. Cash...

Which of the following activities would be reflected in cash flows from operating activities?

A.

Cash receipts from the sale of goods or services to customers.
B.

Cash payments for dividends.
C.

Cash receipts from the issuance of common stock.
D.

Cash receipts from the sale of investments.
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Answer #1

Cash receipts from the sale of goods or services to customers would be reflected in cash flows from operating activities .i.e. Option (A) is the correct answer.

A.

Cash receipts from the sale of goods or services to customers- Operating Activity.
B.

Cash payments for dividends- Financing Activity.
C.

Cash receipts from the issuance of common stock.- Financing Activity
D.

Cash receipts from the sale of investments.-Investing Activity
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