Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Cash Flow Statement

Question:

'The sale of goods for cash' comes under which category of activity in the cash flow statement?

Options:

Operating activity

Investing activity

Financing activity

None of these

Correct Answer:

Operating activity

Explanation:

Cash Inflows from operating activities-
 cash receipts from sale of goods and the rendering of services.
 cash receipts from royalties, fees, commissions and other revenues.