How many of the following transactions are operating activities?

a. borrowed $50,000 from the bank
b. purchased $12,000 in supplies
c. provide services to customers for $27,000
d. paid the utility bill of $750
e. purchased a delivery truck for $12,000
f. received $25,000 from issuing common stock

The correct answer are A, B and D

Explanation:

Operating activities are the one of three activities of the cash flow, these activities are those which are incurred for the business and are directly related to providing its services or goods to the market. These are the core business activities of the company like selling service, manufacturing, distributing and marketing.

The following are the transactions of operating activities:

1. Paid the utility bill amounts to $750

2. Purchased supplies for $12,000

3. Borrowed from bank amount of $50,000

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