What are operating activities? A. Revenue and expenses involved in running a business B. Cash transactions related to the company's financial investments C. Transactions that bring cash in and out based on borrowing and lending D. The ways a company tracks and distributes dividends
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Ответ:
A. Revenue and expenses involved in running a business
Explanation:
A financial statement can be defined as a written report used by financial experts or accountants to quantitatively describes the financial health of a company. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Operating activities in the statement of cash-flow of a business firm gives a detailed description of the out-flow and in-flow of cash from liabilities and current assets account. Thus, all the net income or cash from all operational business activities of a company is recorded as operating activities.
Hence, operating activities can be defined as revenue and expenses involved in running a business.
Some examples of operating activities are cash paid as an expense for merchandise, cash revenue generated from the sales of finished goods etc.
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