Operating Activities

Operating activities refer to the core actions a business takes to produce goods or provide services and generate revenue. This includes activities like selling products, paying employees, purchasing inventory, and managing day-to-day expenses. Essentially, operating activities are the primary functions that keep the business running and its cash flow healthy. They are reflected in the company's cash flow statement and help show whether the business is financially sustainable from its main operations. These activities are distinct from investing or financing activities, which involve buying assets or raising funds.