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How would revenue from sales of goods and services be classified?

(a) Operating outflow.
(b) Operating inflow.
(c) Investing inflow.
(d) Financing inflow.

User Mvbrakel
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1 Answer

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Final answer:

Revenue from sales of goods and services is classified as an Operating inflow, reflecting the income earned through a company's primary business activities.

Step-by-step explanation:

The revenue generated from sales of goods and services would typically be classified as an Operating inflow. This classification aligns with the way financial transactions are recorded in the context of a company's day-to-day business operations. Operating inflows include all forms of revenue that a company earns from its normal business activities, which for most businesses encompasses the sale of goods and services. This is contrasted with Investing inflows, which are related to gains from the sale of long-term assets or investment securities, and Financing inflows, which pertain to capital raised through issuing debt or equity.

User Sheri
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