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2 May, 12:22

Which of the following is included in operating activities?

a. An increase in equity

b. An increase in accounts receivable

c. An increase in long-term debt

d. All of these choices are correct. g

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Answers (1)
  1. 2 May, 15:53
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    b. An increase in accounts receivable

    Explanation:

    A: Equity is not an operating activities. It is a financing of a company. Therefore, increasing in equity cannot be the right choice.

    C: Receive from long-term debt and paying to long-term debt are financing activities, therefore, it cannot be the answer.

    B: Operating activities are day-to-day activities. And, collection from accounts receivable is a day-to-day activities for a firm. Hence, it is correct option.

    Therefore, Increase in accounts receivable is the answer.
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