Which one is about cash flow?

Question

Cash flows from acquiring and selling products are classified as

operating activities

investing activities

financing activities

distribution activities

Answer 1

operating activities.

(If acquiring and selling stock, bonds, or notes products, then it is an investing activity, if the company is not a bank or an investment company.)

Answer 2

operating activities is your answer.

Investing activities would be buying a piece of equipment for your business.

financing activities would be investing money stocks I believe.

Answer 3

Operating acivities means producing/purchasing goods for sale; i.e., sales less cost of goods sold, less selling expenses, less general and administrative expenses.  The others are sources and uses of cash, but not from acquiring and selling products.