operating activities
Definition
Transactions and events that directly affect a firm's cash inflows and outflows, and determine its net income. Cash inflows result from sales of goods or services, sale of firm's stock (shares), and from income earned on investments. Cash outflows result from equipment and inventory purchases, interest and principal payments on loans, salaries, dividends, and various other costs and expenses.
operating activities is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
operating activities appears in the definitions of the following terms: cash flows from operating activities, cash outflow, cash flow statement, cash inflow, cash flow, indirect method cash flow statement, direct method cash flow statement and operating cash flow to sales ratio
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