Answer:
Operating activities are the same activities as reported in the income statement
Explanation:
As we know that in the cash flow statement there are three types of sections i.e. operating, investing and financing. ALso it deals with the inflow and the outflow of cash
here we adjusted the non-cash and non-operating activities to the operating profit
Plus we add the non-cash expense
and deduct the gain and add the losses
Therefore the first option is correct