The cash a firm spends to carry out its business activities falls under which term?

The cash a firm spends to carry out its business activities is best captured by the term "operational expenses." This category encompasses all costs associated with the day-to-day functioning of a business, excluding the costs associated with producing goods sold. Operational expenses include salaries, rent, utilities, and other costs necessary for running the business effectively.

Cost of goods sold refers specifically to the direct costs attributable to the production of the goods sold by a company, such as materials and labor directly involved in manufacturing products. Although important, it does not cover all cash flows related to the overall business operations.

Net income is the profit of a company after all expenses, including operational and non-operational ones, have been deducted from total revenue. It represents the financial performance of a company rather than the cash outflows related to operational activities.

Administrative expenses are a subset of operational expenses and relate specifically to the overhead costs of running the business, such as executive salaries, office supplies, and other expenses not directly tied to manufacturing.

Thus, operational expenses is the broadest and most accurate term for the cash expenditures related to a firm's ongoing business activities.