Asked by Morgan Young on May 18, 2024
Verified
Each of the following would be reported under operating activities except cash receipts
A) from sales of goods.
B) from sales of investments.
C) of interest on loans.
D) of dividends from investments.
Operating Activities
Day-to-day business functions involving the production and delivery of a company's products and services.
Cash Receipts
Money received by a business during a period of time, including revenues and other inflows of cash.
Sales of Investments
Transactions involving the disposal of investment assets, such as stocks, bonds, or real estate, often to realize gains or for strategic portfolio adjustments.
- Develop the ability to identify components that have an effect on the cash flow statement, inclusive of operational and non-operational actions.
Verified Answer
AP
Archil PipwalaMay 22, 2024
Final Answer :
B
Explanation :
Cash receipts from sales of investments would be reported under investing activities, not operating activities. The other options would be reported under operating activities.
Learning Objectives
- Develop the ability to identify components that have an effect on the cash flow statement, inclusive of operational and non-operational actions.