Operating Activities

Operating activities involve producing goods and delivering services to customers. Operating activities also is a residual category in that all transactions not categorized as investing or financing activities are categorized as operating activities. There are differences in the direct and indirect methods of the statement of cash flows in the operating activities section, but not in the other sections. Receiving and paying interest and receiving dividends are operating activities under U.S. GAAP. See also investing activities and financing activities and direct method and indirect method.