Operating activities are the primary sources of revenue for a company. They include activities such as production, sales, marketing, and customer service. These activities generate cash that can be used to pay expenses, fund new operations, or reinvest in the business.

In contrast, non-operating activities involve short-term investments, long-term debt payments, and anything else unrelated to the core business operations. Non-operating activities may generate income or loss and do not directly affect daily operations. Examples include stock dividends and royalty payments.