Of the three major activities of a firm, are cash transactions associated with running the business.Need help? Review these concept resources.

The three major activities of a firm are operating, investing, and financing activities. Cash transactions associated with running the business fall under the category of operating activities.

Here are the steps to understand this:

1. Operating

The three major activities of a firm are operating, investing, and financing activities. Cash transactions associated with running the business are part of the operating activities.

Here are the steps:

1. Operating Activities: These are the primary activities of a business. They include cash received from customers, cash paid to suppliers and employees, interest received or paid, and tax payments.

2. Investing Activities: These involve the acquisition and disposal of long-term assets, such as property, plant, equipment, and the stakes in other businesses.

3. Financing Activities: These are transactions with owners and creditors such as issuing equity, paying dividends, issuing or repaying debt securities.

So, cash transactions associated with running the business are part of the operating activities.