All those activities which are directly related to basic business revenue earning activities like sales, purchases etc.
operating cash flows are all those cash inflows and outflows due to basic business operating activities.
Operating activities
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
Operating Activities ;)
1 - Cash flow from operating activities 2 - Cash flow from investing activities 3 - Cash flow from financing activities
operating cash flows are all those cash inflows and outflows due to basic business operating activities.
operating cash flows are all those cash inflows and outflows due to basic business operating activities.
Net cash flow means net of cash inflow and outflows while operating cash flows means cash flows generated by operating activities of business.
Operating activities
following items are included in cash flow statement1 - cash flow from operating activities2 - cash flow from investing activities3 - cash flow from financing activities.
a) Cash flows from Operations. It also provides information on cash flows from investing activities and finance activities.
Operating Activities
The main difference between the direct method and the indirect method involves the cash flows from operating activities. Under the direct method, the cash flows from operating activities will include the amounts for lines such as cash from customers and cash paid to suppliers. In contrast, the indirect method will show net income followed by the adjustments needed to convert the total net income to the cash amount from operating activities.
the advantage is that it focuses on the differences between net income and net cash flows from operating activities. Meaning, it makes it more useful to relate the statement of cash flows and the income statement and balance sheet. Also it is less costly to change net income to net cash flow from operating activities.
cash flows from operating activities
Cash flow statement means the cash inflow and outflow from business due to operating, financing and investing activities.
Operating Activities ;)