Question:medium

Identify which of the following transactions will result in ‘Cash Inflow From Operating Activities’:

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Operating activities are the primary revenue-generating activities of the business, excluding investing and financing activities.
Updated On: Jan 13, 2026
  • Payment to creditors
  • Interest received by a non-finance company
  • Dividend received by a non-finance company
  • Amount received from debtors
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The Correct Option is D

Solution and Explanation

Cash generated from core business operations, such as cash sales, customer payments, and other fundamental operational receipts, constitutes cash inflow from operating activities. Collections from debtors specifically refer to cash obtained from customers, directly tied to these operational functions.
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