Question:
Which of the following transactions will result in cash flows from operating activities?
Which of the following transactions will result in cash flows from operating activities?
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Cash flows from operating activities include transactions related to the principal revenue-generating activities of the business, such as cash receipts from sales and payments to suppliers.
Updated On: Jan 13, 2026
- Cash receipts from sale of investments ₹ 60,000
- Cash receipts from sale of goods ₹ 94,000
- Dividend received ₹ 31,000
- Payment of cash for purchase of fixed assets ₹ 3,00,000
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The Correct Option is B
Solution and Explanation
Operating activities primarily involve the core business operations. Cash receipts from the sale of goods are considered operating cash flows because they are directly related to the business's main activities, such as selling products.
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