Which cash flow activity involves coming into funds?

Operating activities include the primary revenue-generating activities of a business, and they often involve the cash flows from sales of goods and services, as well as cash receipts from customers. This category reflects the core operations of the business, where money is received as part of the normal business cycle. Hence, when considering cash flow activities that involve coming into funds, operating activities are most directly associated with inflows derived from the day-to-day operations that generate income.

Investing activities typically involve transactions related to the purchase or sale of long-term assets, such as property or investments which may result in cash inflows when assets are sold but primarily focus on the use of cash rather than its generation from operations. Financing activities, on the other hand, encompass cash activities related to borrowing, repaying debt, issuing shares, or paying dividends, which also may involve coming into funds but are not as closely tied to the day-to-day operational cash inflows.

While all cash flows are relevant to the overall financial picture of a business, the operating activities specifically highlight the regular inflow of funds that directly support the company’s ongoing operational needs. Thus, operating activities stand out as involving cash inflows in the context of normal business functioning, aligning with the notion of coming into funds