operating activities

  

Definition

An activity that directly affects an organization's cash inflows and outflows, and determine its net income.

Cash inflows result from sales of goods or services, sale of 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.


Use this term in a sentence

  • You should try to be kept up to speed on all of your operating activities and how you are progressing at the moment.

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  • Our operating activities were running smoothly and I felt that we were going in the right direction with our company.

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  • You should be aware of all operating activities that are going on at your workplace so that you can help out if need be.

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