Question

Operating activities: Multiple Choice Are the means organizations use to pay for resources like land, buildings and equipment. Involve using resources to research, develop, purchase, produce, distribute and market products and services. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. Are also called asset management. Are also called strategic management.

Answer 1

Answer:

B. Involve using resources to research, develop, purchase, produce, distribute and market products and services.

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 involve using resources to research, develop, purchase, produce, distribute and market products and services. Some examples of operating activities are cash paid as an expense for merchandise, cash revenue generated from the sales of finished goods etc.