Which of the following describes operating activities?

Operating activities refer to the primary revenue-generating activities that a company engages in during its normal course of business. This includes the production, sale, and delivery of goods and services. Buying inventory is a fundamental aspect of operating activities because it directly relates to maintaining the stock needed to support sales. Purchasing inventory ensures that a company can meet customer demand and continue its operations without interruption.

While collecting accounts receivable also pertains to operating activities, it is considered a financing activity since it involves the management of funds already put into the company through credit sales. Issuing new shares of stock relates to financing activities, as it involves raising capital. Paying dividends is not classified as an operating activity, but rather a financing activity, as it involves distributing profits to shareholders. Thus, buying inventory is indeed the most accurate representation of operating activities among the given options.