General Knowledge · Accounting & Finance
How do operating activities affect cash and working capital in a business?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Operating activities impact only long-term assets and liabilities, not current ones.
- 2Operating activities only affect current liabilities and not current assets.
- 3Operating activities affect both cash and other current assets and liabilities, impacting working capital.✓
- 4Operating activities only affect cash and do not impact current assets or liabilities.
Correct answer
Operating activities affect both cash and other current assets and liabilities, impacting working capital.
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