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Operating activities and investment activities related to. Investing activities include purchases of. Operating activities are all our actions from purchasing raw materials to getting the finished product to the buyer. Ad Create outdoor areas with stimulating resources that are perfect for outdoor environments.
The difference between operating activities financing activities and investment activities. The operating activities of a business are found in the business financial statements particularly the cash flow statement and the income statement. Some cash flows relating to investing or financing activities are classified as operating activities.
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Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. For example receipts of investment income interest and dividends and payments of interest to lenders are classified as investing or financing activities. Investment and financing activities are not directly related to the supply of goods and services.
For example cash generated from the sale of goods revenue and cash paid for merchandise expense are operating activities because revenues and expenses are included in net income. The statement of cash flows presents sources and uses of cash in three distinct categories. Operating activities include cash activities related to net income.
However they do not include financing and investing activities. Cash flows from operating activities cash flows from investing activities and cash flows from financing activities. Cash flows from investing activities are cash business transactions related to a business investments in long-term assets.
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