Asked by celeste richmond on May 07, 2024
Verified
An example of operating activities is Accounts Receivable.
Operating Activities
Financial transactions and events related to the core business functions of a company, as reported in the cash flow statement.
Accounts Receivable
Accounts receivable represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.
- Dissect the contrast in cash flows derived from activities related to operations, investments, and finances.
Verified Answer
MC
Marcella ConsiglioMay 10, 2024
Final Answer :
True
Explanation :
Accounts Receivable is considered an operating activity because it is directly related to the core business operations, involving the credit sales of goods or services to customers.
Learning Objectives
- Dissect the contrast in cash flows derived from activities related to operations, investments, and finances.