Which of the following is not an Operating Activity? (2024)

FAQs

What is not an operating activity? ›

Non-operating activities are one-time events that may affect revenues, expenses or cash flow but fall outside of the company's routine, core business.

Cash payments for dividends to shareholders. Neither of these are operating activities. Cash payments for dividends to shareholders are classified under financing activities.

d. Payment of dividends would not be classified as an operating activity. An Operating activity is any activity in an organization that helps to generate revenue. Apart from payment of dividends, all the other given activities can be classified as operating activities.

Key operating activities for a company include manufacturing, sales, advertising, and marketing activities. Cash flows from operations are an important metric used by financial analysts and investors. Operating activities can be contrasted with the investing and financing activities of a firm.

Expert-Verified Answer

The 'Purchase of merchandise' is not a component of the operating cycle; it is a preparatory step before the cycle involving sales and collections.

The correct answer is Router. The Router is not an operating system.

Purchase of equipment for cash is not an operating cash flow.

Operating cash flow is equal to revenues minus costs, excluding depreciation and interest. Depreciation expense is excluded because it does not represent an actual cash flow; interest expense is excluded because it represents a financing expense.

Non-operating components on the income statement include revenue and expense items that were not generated during the regular course of business operations. Due to the material nature of non-operating items, they are always reported exclusively i.e. separate from operating items in a company's financial statements.

Common non-operating assets include unallocated cash and marketable securities, loans receivable, idle equipment, and vacant land.

Which of these is not an investing activity? ›

The issuance of common stock is a financing activity, not an investing activity.

What are operating activities? Operating activities are the types of activities the company performs to generate profits. What are investing activities? Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities.

Answer and Explanation:

Payments for inventory, payments for salaries, cash received from the sale of goods. a. Payments for inventory, payments for salaries, cash received from the sale of goods. All these items will be classified as operating activities.

An operating expense is an expense that a business incurs through its normal business operations. Often abbreviated as OpEx, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

Oracle is not an operating system. It is a database management system. DOS, Linux and Windows are operating systems.

Non-operating components on the income statement include revenue and expense items that were not generated during the regular course of business operations. Due to the material nature of non-operating items, they are always reported exclusively i.e. separate from operating items in a company's financial statements.

Non-operating assets are assets that are not considered to be part of a company's core operations. A company's non-operating assets may be unused land, spare equipment, investment securities, and so on. Income from non-operating assets contributes to the non-operating income of a company.