What sources of cash are included under cash from operating activities?

The correct answer, which focuses on cash from operating activities, is rooted in the core functions of a business required to generate revenue. Cash from operating activities includes cash inflows from the sales of goods and services, which are considered sales receipts. Additionally, interest payments received from investments also fall under this category of operating activities. The primary aim of operating activities is to determine how much cash is generated or utilized in the everyday functioning of the company, and both sales receipts and interest payments are integral to that process.

Other sources of cash mentioned in the incorrect options do not fit within the definition of operating activities. Changes in investments and assets pertain more to investing activities rather than operating. Cash from loans and dividends is categorized as financing activities, dealing with how a company finances its operations rather than how its core operations generate cash. Lastly, net income reflects overall profitability, while retained earnings denote accumulated profits; neither directly represents cash flow from operating activities.