an economic activity which usually focuses on earning profit state the reason of earning profit
Answers
What are Business Activities
Business activities include any activity engaged in the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business. Business activities, including operating, investing and financing activities, are ongoing and focused on creating value for shareholders.
BREAKING DOWN Business Activities
There are three main types of business activities: operational, investing and financing. The cash flows used and created by each of these activities are listed in the annual report within the financial statement referred to as the cash flow statement. The cash flow statement is meant to be a reconciliation of net income with cash flow. Each line item on the income statement and balance sheet is identified according to business activity. Noncash items deducted from net income are added back to net income; noncash items added to net income are deducted from cash flows. The result is a report that gives the investor a summary of both cash and noncash business activities within the company.