Business Activities

Business activities are any activities designed to make a profit.

In terms of accounting, these activities can be categorized three ways: operational, investing and financing.

All the cash created and/or used for these activities is recorded on the cash flow statement. The first chunk of the cash flow statement includes cash made from operating activities. The second is investing, but only if it can be capitalized in under one year (in essence, cashed out in a year or less, versus a long-term bond, for example). Last is financing, which includes cash paid out for stock dividends, interest, share repurchases, debt financing, and even fundraising.