What refers to the capital generated and used by daily activities?

The term that describes the capital generated and used by daily activities is net current assets. Net current assets represent the difference between a company's current assets and current liabilities, highlighting the liquidity available for everyday operations. This concept is crucial for businesses as it illustrates the working capital necessary to fund regular activities, such as paying suppliers, covering operational expenses, and managing inventory.

In contrast, opening balance refers to the amount of money available at the beginning of a financial period, while closing balance represents the amount at the end of a financial period. Total cash outflow indicates the total cash expenditures over a given period, which may not solely relate to daily operational activities but includes various long-term and short-term cash movements. Thus, net current assets accurately encapsulate the operational cash flow and resources needed for a business's day-to-day functioning.