Final answer:
The operating assets that can be used to make Cash from Operations section are Accounts Receivable, Prepaid Rent, and Inventory. The correct answer is B.
Step-by-step explanation:
Operating assets are assets that a company uses in its daily operations to generate revenue. These assets are usually listed on the balance sheet under current assets. From the options given, the operating assets are:
Accounts Receivable: The amount customers owe the company
Prepaid Rent: Rent paid in advance
Inventory: Goods held for sale
The other options such as investments, long-term intangible assets, and property, plant, and equipment are not considered operating assets because they are not directly involved in the day-to-day operations of the company.
Operating assets for the Cash from Operations section include Accounts Receivable, Prepaid Rent, Inventory, and Property, Plant, and Equipment, which are directly involved in a company's day-to-day operations.
When determining which assets are considered operating assets for the Cash from Operations section, one needs to select assets that are actively involved in the day-to-day operations of a business. The operating assets applicable in this context include Accounts Receivable, Prepaid Rent, Inventory, and Property, Plant, and Equipment. These assets are used in the company's core business operations, generating revenue and cash flows. In contrast, Investments and Long-term intangible assets are typically not included in the calculation of cash from operations as they represent financial investments and non-physical resources that are not tied directly to daily business functions.