vinayak c. chavan (CPT passed) (1016 Points)
02 February 2011What is operating activities? what should be included in it while preparing cash flow statement?
mallika agrawal
(CA FINAL )
(855 Points)
Replied 02 February 2011
operating activities = revenue generating activities
all activities in the normal course of business
avinash
(CA, CS)
(54 Points)
Replied 02 February 2011
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.
ashoka r d
(senior audit assistant)
(82 Points)
Replied 02 February 2011
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
Manjul Soni.
(CA Student.)
(1407 Points)
Replied 03 February 2011
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.......
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