Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which of the following activities is NOT included in cash flow from operating activities?
Which of the following activities is NOT included in cash flow from operating activities?
- Receipt of cash from customers
- Payment of interest on loans
- Payment of salaries to employees
- Purchase of new equipment (correct)
What is the primary focus of cash flow from operating activities?
What is the primary focus of cash flow from operating activities?
- Managing long-term assets and liabilities
- Raising capital through debt and equity
- Investing in new projects and ventures
- Day-to-day operational activities of the business (correct)
How does an increase in accounts receivable affect cash flow from operating activities?
How does an increase in accounts receivable affect cash flow from operating activities?
- Has no impact on cash flow
- Makes cash flow unpredictable
- Decreases cash flow (correct)
- Increases cash flow
Study Notes
Cash Flow from Operating Activities
- Financing activities, such as borrowing and repaying debt, are NOT included in cash flow from operating activities.
- The primary focus of cash flow from operating activities is to report a company's ability to generate cash from its core business operations.
- An increase in accounts receivable negatively affects cash flow from operating activities, as it represents a delay in receiving cash from customers.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of cash flow from operating activities with this quiz. Explore the primary focus, included activities, and the impact of accounts receivable on cash flow from operating activities.
