Question : Which of the following is an example of operating activities for a non-Finance company?
Option 1: Cash receipts from sale of goods and/or rendering services;
Option 2: Cash receipts from royalties, fees and commission, etc.;
Option 3: Cash receipts from Trade Receivables (i.e., Debtors and Bills Receivable);
Option 4: All of the above
Answer (1)
16th Jan, 2024
Correct Answer: All of the above
Solution : Answer = All of the above
In the case of a Non-Finance company, cash receipts from the sale of goods and cash collected from Royalties and from trade receivables are examples of operating activities as they represent core business operations generating cash inflows.
Hence, the correct option is 4.
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