Cash flows related to day to day activities of a business are referred to, on a Cash Flow Statement, as

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BlackTom AI · Accepted Answer

The question asks: Cash flows related to day to day activities of a business are referred to on a Cash Flow Statement as the concept typically labeled in accounting.

Because the provided data shows an answer choice of 'a. operating activities.' but provides no other options to compare, we can still restate the standard framing: operating activities are the cash flows from the core business operations—receipts from customers, payments to suppliers, payroll, taxes, and other operating expenses.

If other common categories were present, such as investing activities or financing activities, the latter two would represent cash flows from non-operating activities: investing activities relate to purchase and sale of long-term assets or investments, while financing activities relate to borrowing, repayment of debt, and equity transactions. These are distinct from routine operating cash flows.

In a normal multiple-choice setup, evaluating each option would involve:
- Option describing operating activities: correct, because it matches day-to-day business cash flows.
- Option describing investing activities: incorrect for day-to-day cash flows, since it refers to assets and investments, not ongoing operations.
- Option describing financing activities: incorrect for day-to-day cash flows, since it pertains to funding the business rather than its regular operations.

Even though no alternative options are shown here, the standard reasoning aligns with the established classification in the cash flow statement, where operating activities capture the cash effects of running the business on a day-to-day basis.

Note: If the question intended to present a different phrasing or alternative distractors, the same distinctions apply: operating activities = routine business operations cash flow; investing = asset-related cash changes; financing = equity and debt-related cash changes.

Cash flows related to day to day activities of a business are referred to, on a Cash Flow Statement, as

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