P2 C6 CASH FLOW STATEMENT — Elements of Account STD 12 Commerce — Question

Operating activities are activities that emerge from profit and loss statement. Operating activities are those activities on the basis of which main income of the business is created.Following transaction are always operating activities.
For Trading Company: Activities pertaining to purchase-sales of goods are main activities of income generation.
For Insurance Company: Activities pertaining to premium income and payment of claims are main activities of income generation.For Banks : Activities pertaining to lending of loan and acceptance of deposit are main activities of income generation.