Question

Which one is Cash Inflows from operating activities?

Options

• Cash receipts from sale of goods and the rendering of services.

• Cash payments to suppliers for goods and services.

• Cash payments to and on behalf of the employees.

• Cash payments to an insurance enterprise for premiums and claims, annuities, and other policy benefits.

Answer 1

Cash receipts from sale of goods and the rendering of services.

Explanation:

Because cash flows from operating operations are primarily obtained from the enterprise's principal activities, they typically result from the transactions and other events that go into determining net profit or loss. The following are some examples of cash flows from operating activities:

1. Cash receipts from royalties, fees, commissions and other revenues
2. Cash receipts from sale of goods and the rendering of services.