BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Activity involved with employing the resources of the business to generate revenues is:
A
Accounting
B
Financing
C
Investing
D
Operating
Explanation: 

Detailed explanation-1: -Operating activities are the daily activities of a company involved in producing and selling its product, generating revenues, as well as general administrative and maintenance activities.

Detailed explanation-2: -Operating activities are all the things a company does to bring its products and services to market on an ongoing basis. Non-operating activities are one-time events that may affect revenues, expenses or cash flow but fall outside of the company’s routine, core business.

Detailed explanation-3: -Operating activities. include cash activities related to net income. For example, cash generated from the sale of goods (revenue) and cash paid for merchandise (expense) are operating activities because revenues and expenses are included in net income.

Detailed explanation-4: -Operating activities relate to transactions that affect net income. Operating activities examples include: Receipt of cash from sales. Collection of accounts receivable. Receipt or payment of interest.

There is 1 question to complete.