How many of the following transactions are operatingactivities? • borrowed $50,000 from the bank• purchased $12,000 in supplies• provide services to customers for $27,000• paid the utility bill of $750• purchased a delivery truck for $12,000• received $25,000 from issuing common stocka. one. b. twoc. threed. four

C. Three

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

So, in the above question, there are 3 transactions which are to be considered as operating activities that includes Purchased $12,000 in supplies, Provide services to customers for $27,000, and Paid the utility bill of $750

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total