Which transaction would typically appear in the operating activities section of the cash flow statement?

• A. Cash receipts from customers
• B. Proceeds from issuing stock
• C. Dividends paid
• D. Interest paid on loans

Answer: (A)

Cash flow from operating activities tracks the cash generated or used by the business’s day-to-day operations. Cash receipts from customers are included here because they come from selling goods or services—the core activity that generates revenue. The other items belong to different sections: proceeds from issuing stock are financing activities, dividends paid are financing activities, and interest paid on loans is typically shown as an operating outflow (but it’s not a cash inflow from customers). So, cash receipts from customers is the transaction that would typically appear in the operating activities section.