what are operating activities 
operating activities are the actions taken by a business to produce and provide its goods and services to consumers cash outflows relating to operating activities can include taxes and refunds 6the bottom linebusinesses can generate cash flow statements using either the indirect or direct method the indirect method starting with net income and adjusting for noncash items and balance sheet changes is simpler and more commonly used especially by larger firms because it s efficient and easy to prepare conversely the direct method lists actual cash inflows and outflows and offers a clearer and more detailed picture of cash flows while the indirect method is widely preferred the financial accounting standards board recommends the direct method for its transparency regardless of the method used both approaches ultimately report the same total cash generated from operating activities 