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10. For the listed items below, which ones belong to operating?

A. Trade Receivables
B. Finance receivables from selling to distributors
C. Right-of-use assets under finance lease
D. Goodwill
E. Long-term equity investment with 10% stake
F. Unearned Revenue
G. Holding long-term US government bond classified as marketable securities

1 Answer

1 vote

Answer:

A. Trade Receivables

F. Unearned Revenue

Trade receivables represent amounts owed to the company for goods or services provided in the normal course of business, which is an operating activity. Unearned revenue refers to payments received in advance for goods or services that will be delivered in the future, also falling under operating activities.

Step-by-step explanation:

The other items listed do not belong to operating:

B. Finance receivables from selling to distributors - This falls under financing activities.

C. Right-of-use assets under finance lease - This falls under financing activities.

D. Goodwill - This is an intangible asset and does not belong to operating activities.

E. Long-term equity investment with 10% stake - This falls under investing activities.

G. Holding long-term US government bond classified as marketable securities - This falls under investing activities.

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User Lupus
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