Transactions and events that affect net income such as the production and purchase of inventory, the sale of goods and services to customers, and the expenditures to run a business are classified as:

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22-04-2022
Business

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Transactions and events that affect net income such as the production and purchase of inventory, the sale of goods and services to customers, and the expenditures to run a business are classified as:

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jayilych4real jayilych4real · Answer 1 · 2022-04-29T17:15:32+02:00

The classification of transactions that affect net income and the expenditures to run a business are classified as operating activities.

What is Inventory?

This refers to the record-keeping of the number of goods available in a warehouse for easy financial accounting.

Hence, we can see that based on the classification of net income based on events that affect net income and the expenditures to run a business are classified as operating activities.