An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.
A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.
- The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market.
- Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business.
- Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive.
- It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.
Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.
Learn more about cash flow activities here:
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Answer:
The correct answer is C
Explanation:
The amount of correct balance which is shown in the bank account at the month end is:
= Month end balance - Outstanding balance + Deposit in transit at month end + Check which was erroneously charged by bank
= $36,000 - $10,000 + $4,000 + $600
= $26,000 + $4,600
= $30,600
Therefore, the month end balance amounts to $30,600 in the bank account.
Organizational environment is the concept that <span>refers to all factors outside an organization that affect the organization's operation. These factors affect performance, resources, and operations. These are factors to consider when predicting trends and making decision regarding the company. </span>