In the context of a firm's statement of cash flows, operating activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).

Question

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Operating activities in a statement of cash flows relate to the day-to-day operations of the business, such as revenue generation, expenses, and working capital management. Purchases, sales, or investments in fixed assets would be classified under investing activities.

In the Context of a Firm's Statement of Cash Flows