Question

Identify which of the following transactions are classified or shown as Operating Activity : (i) Cash recived from sale of goods.
(ii) Cash paid for purchase of goods.
(iii) Payment of salaries and wages .
(iv) Payment of interest on loan.
(v) Repayment of loan .
(vi) Purchase of machinery .
(vii) dividend paid.
(viii) Sale of car in cash.
(ix) Commission received.
(x) Cash recived form tarde receivables.

Answer 1

Transactions that are classified as Operating Activity are :
(i) Cash received form sale of goods.
(ii) Cash paid for purchase of goods.
(iii) Payment of salaries and wages.
(ix) Commission recived.
(x) Cash recived from the trade receivalbes.