Question

The purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business are all reported on the statement of cash flows under________________ activities.

Answer 1

Answer: Operating Activities

Explanation: The cash flow statement lists 3 activities: The operating activities which is the most important 1. It lists cash receipts, adjustments to net income plus depreciation, gain or loss on a fixed asset and changes in current assets and liabilities. The investing activities lists the purchase and sale of fixed assets. Finally, the finance activities focuses on paying its liabilities which can be issuing shares of stock, paying dividends, and receiving a long-term note payable.

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