Which activities are classified as operating activities?

Operating activities encompass the primary revenue-generating activities of a company, which typically involve the production and sale of goods or services. When considering what constitutes operating activities, we focus on cash transactions that directly relate to the business's core operations. This includes cash received from customers for sales of products or services and cash payments made to suppliers and employees.

In this context, the correct option highlights cash transactions that are integral to the day-to-day functions of the business. These activities are vital for assessing the company's operational efficiency and overall financial health.

The other options relate to financing and investing activities rather than the core operational focus. For example, cash transactions for investments are related to the acquisition of long-term assets, while transactions involving loans pertain to financing. Similarly, cash transactions for company expansions are generally associated with capital expenditures and strategic growth initiatives, which fall outside the normal operational cash flows. Therefore, the classification of cash transactions that are related to core business operations accurately reflects what is considered operating activities.