Asked by Rebekah Turner on Apr 24, 2024
Verified
Operating activities result from the cash effects of producing and delivering goods and services.
Operating Activities
The day-to-day actions of a business involved in producing and selling its goods or services, which are reflected in the cash flow from operating activities.
Producing
The act of creating, manufacturing, or generating products or services.
Delivering Goods
The process of transporting goods from the seller or a fulfillment center to the buyer's location.
- Comprehend the variety of activities—operating, investing, and financing—that influence a company's cash flow and their depiction in financial reports.
Verified Answer
CA
Chinedu AjuruchiMay 02, 2024
Final Answer :
True
Explanation :
Operating activities are a core part of a company's business, encompassing the cash flows related to the production and delivery of goods or services. This can include revenue from sales, payments from customers, payments to suppliers, wages and salaries to employees, and other expenses incurred in the course of business operations.
Learning Objectives
- Comprehend the variety of activities—operating, investing, and financing—that influence a company's cash flow and their depiction in financial reports.
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