Question

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as: Multiple Choice Financing activities. Investing activities.

Answer 1

Answer:

Operating activities

Explanation:

The operating activities in the cash flow statement using the direct method derive that the cash receipts and the cash payment should be recorded under this activity.

Cash payment would be recorded when the purchase of merchandise is held

And cash received would be recorded when the sale of goods and services made to customers

And, the purchase of goods, sales of goods and services show in the income statement along with the expenditure to arrive at the net income i.e. shown in the operating activities