**Operating Activities:**

Operating activities refer to the day-to-day activities that are directly related to the core operations of a business, which generate revenue. These activities involve the production, sales, and delivery of goods or services. Operating activities are essential for the sustainability and growth of a company. Examples of operating activities include:

1. **Sales of Goods or Services:** Revenue generated from the sale of products or services is a primary operating activity. This includes cash sales as well as credit sales.

2. **Purchasing of Inventory:** The purchase of inventory or raw materials for production is another operating activity. It involves cash outflow to acquire goods that will be sold to customers.

3. **Payment of Operating Expenses:** Operating activities also include the payment of expenses directly related to running the business, such as salaries, rent, utilities, and marketing costs.

4. **Collection of Accounts Receivable:** When customers pay their outstanding debts, it is considered an operating activity. This inflow of cash represents the collection of accounts receivable.

5. **Payment of Accounts Payable:** Similarly, when a business pays its outstanding debts to suppliers, it is considered an operating activity. This outflow of cash represents the payment of accounts payable.

**Investing Activities:**

Investing activities involve the acquisition or disposal of long-term assets that are not intended for immediate resale. These activities are aimed at enhancing the company's long-term capabilities or generating investment income. Examples of investing activities include:

1. **Purchase or Sale of Property, Plant, and Equipment:** Investing activities include the acquisition or sale of fixed assets, such as land, buildings, machinery, or vehicles.

2. **Investment in Marketable Securities:** Companies may invest surplus cash in stocks, bonds, or other marketable securities to earn additional income.

3. **Purchase or Sale of Investments:** Investing activities also include buying or selling investments in other companies or subsidiaries.

4. **Loans Made or Received:** Loans provided to other entities or loans received from external sources are considered investing activities.

**Financing Activities:**

Financing activities involve transactions that affect the company's capital structure and its relationship with owners and creditors. These activities are related to raising funds or repaying obligations to investors or lenders. Examples of financing activities include:

1. **Issuance of Common Stock:** When a company issues new shares of common stock, it is considered a financing activity. The proceeds received from the sale of stock increase the company's equity.

2. **Issuance of Debt:** Companies may raise funds by issuing bonds or taking on loans. The cash received from these activities is considered a financing activity.

3. **Repayment of Debt:** When a company repays the principal amount of a loan or bond, it is considered a financing activity. This outflow of cash reduces the company's liabilities.

4. **Payment of Dividends:** Cash payments made to shareholders as dividends are considered financing activities. It represents a return of profits to the owners.

5. **Purchase of Treasury Stock:** When a company buys back its own stock from the market, it is considered a financing activity. This reduces the company's equity.

In summary, operating activities are the day-to-day activities that generate revenue, investing activities involve the acquisition or disposal of long-term assets, and financing activities relate to raising funds or repaying obligations. These activities collectively reflect the financial health and performance of a company.

Operating activity is concerned with regular operating work or we can say day to day activity..
Investment Activity is the activity which is sale and purchase or invested into a business for a longer period of time..
Finance Activity refers to the activities that are related to the money invested or sold up security in the business to Increse Pr decrease the finance of the business..