Question:
Identify which of the following transactions will result in ‘Cash Inflow From Operating Activities’:
Identify which of the following transactions will result in ‘Cash Inflow From Operating Activities’:
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Operating activities are the primary revenue-generating activities of the business, excluding investing and financing activities.
Updated On: Jan 20, 2025
- Payment to creditors
- Interest received by a non-finance company
- Dividend received by a non-finance company
- Amount received from debtors
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The Correct Option is D
Solution and Explanation
Cash inflow from operating activities includes:
Cash received from primary business operations.
Examples: Cash sales, collections from debtors, and other core operational receipts.
Amount received from debtors represents cash collected from customers, which is directly related to operating activities.
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