In a cash flow statement, operating activities relate to which type of transactions?

Operating activities in a cash flow statement refer specifically to the cash transactions that are primarily related to the core operations of the business. This includes cash revenues generated from sales of goods and services, as well as cash expenses paid for ongoing operations such as salaries, rent, and utilities.

Identifying cash revenues and cash expenses is crucial because they showcase the cash inflow and outflow that result directly from the company's productive activities. This information provides insight into the company's ability to generate cash from its normal business operations, which is vital for assessing its profitability and overall financial health.

In contrast, investing transactions pertain to cash flows related to the acquisition and disposal of long-term assets, while financing activities involve transactions that result in changes to the equity and debt of the company. Long-term liabilities specifically deal with debts that are due beyond one year and relate to the financing aspect rather than day-to-day operations. Understanding this distinction is key to effectively analyzing a company's cash flow statement.