What is the term for cash receipts and payments required to maintain operational functions of a company?

The term that refers to cash receipts and payments necessary for maintaining a company's operational functions is operating activities. Operating activities encompass the primary revenue-generating activities of a business, including the cash flows from selling goods or providing services, as well as the cash payments made to suppliers and employees.

This category is crucial for assessing a company’s day-to-day financial health and operational efficiency, as it reflects the organization's core business operations. Understanding operating activities helps stakeholders analyze the sustainability of a company's operations and its ability to generate profit from its regular business activities.

In contrast, financial activities generally pertain to transactions involving funding and equity transactions, while investing activities relate to the acquisition or disposal of long-term assets and investments. Administrative activities would primarily focus on the management functions and could encompass a broad range of expenses, but they are not specifically about cash flows related to operational functions.