Activities of the organization depends with the industry it belongs. Different industries have their own sets of industrial core activities, the three most common of which are the following:
The primary product this business sells is the "services" it offers.
In order to earn, those in this business renders services to its clients for a fee.
The primary product of this business is the "merchandise" items it sells.
This business in order to earn, the entity buys goods and adds markup or profit to the cost of goods then sells them to the customers. In short, they are involve in buy-and-sell of merchandise.
The primary product for this business is the goods they produce or manufacture.
This business buys raw materials then converts them into finished goods then sells them to customers at a selling price.Note that in the conduct of business, the entity must be viewed as a separate entity which means their transactions and activities are separate and distinct from that of the owners.
Classification as to Cash Transactions
Though various industries exist but the following economic activities are mutual to all:
The Operating Activities are those business transactions which generates revenue for the organization. These include expenses incurred to produce revenues...read more
The Investing Activities are those transactions which involve acquisition and disposal of assets other then inventory, which are necessary in the business operations...read more
The Financing Activities are those transactions between the entity and its owners or creditors...read more
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