What is operating activities? what should be included in it?

operating activities =  revenue generating activities

1. purchase of raw material
   
2. sale of goods and services
   
3. payments to employees
   
4. loan to employees
   
5. advances to creditors
   
6. taxes of income
   

all activities in the normal course of business

Operating activities in cash flow are consider other than investing activities & financing activities, It means all activities during operation of businees will come under this head excluding above two type of activites.

Operating activities: it includes activities relating prinipal revenue earning activities. that includes

cash receipts of sales and services

cash payments of salaries, wages and other expenses

income tax paid

Operating Acitivities - All Activities Which Generate Revenue Cash flow To the Business, and all Activities in normal course of Business......

In the cash flow - Two methods Of finding Cash flow from Operating Activities Are - Direct and indirect ...........

Direct - All revenue cash flows are considered and ignoring non cash and non operating Cash flows and deduct tax paid,

Indirect - Taking Base as NET PROFIT BEFORE TAX and Removing Effects Of Non cash and Non Operating Items, And also Taking Effect of Working capital changes And Deduct Tax Paid we found Cash From Operating Activity...

Note - Here, Cash Flow means Net Effect of Cash Inflow and Cash Outflow.......