Operating Activities
Definition
Operating Activities is a term used in the context of Accounting and Financial Statements of a Corporation to denote activities related to the core function of the business (according to its Business Model).
Operating activities are Key Activities that may include research and development, production, marketing, sales, service provision, maintenance, support etc. The outcomes of operating activities enable the business to provide its goods and/or services to buyers (consumers), that is, realise its Value Proposition.
In the context of Financial Statements, operating activities heavily affect a Company’s Cash Flow as most (but not all) market transactions. involve Cash. Their impact on the cash position is documented in the Cash Flow Statement
