Maharashtra State BoardHSC Commerce 12th Board Exam
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Explain the Following : Operating Activities in Cash Flow. - Book Keeping and Accountancy

Short Note

Explain the following :
Operating activities in cash flow.

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Solution

These are the routine and recurring activities of a business, i.e. activities related to core operations of the business. They reflect the result of net cash flow (used or generated) of the company’s normal business operations. All the inflows, such as receipt from sale of goods/services etc and outflows, such as payment to suppliers, form part of operating activities, and the net result depicts whether the business is operating efficiently or not.

Concept: Cash Flow Analysis
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 12 Analysis of Financial Statements
Exercise | Q 6 | Page 385
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