Final answer:
The correct answer is cash received in advance for services, as this relates directly to the revenue-generating activities of the company and falls under Operating Activities according to US GAAP.
Step-by-step explanation:
Under US GAAP, Operating Activities include transactions and events that affect net income. When considering the options given, the correct answer would be cash received in advance for services. This is because it is related to the primary, ongoing operations of a company.
Option 1, payment for PP&E (property, plant, and equipment), is considered investing activity, not an operating activity. Option 3, cash collected from stock issuance, is considered a financing activity. In contrast, option 2 involves cash received, which even though it may be in advance, still relates directly to the revenue-generating activities of the company, thus classifying it as an operating activity.
An operating activity under US GAAP refers to the day-to-day activities of a business that generate revenue or incur expenses. Out of the given options, cash received in advance for services is considered an operating activity. This is because it involves the receipt of cash for services that the company will provide in the future. Examples include receiving payment for a subscription or a membership.