![]() ![]() For example, cash generated from the sale of goods (revenue) and cash paid for merchandise (expense) are operating activities because revenues and expenses are included in net income. include cash activities related to net income. Operating activities A section of the statement of cash flows that includes cash activities related to net income, such as cash receipts from sales revenue and cash payments for merchandise.Each of these three classifications is defined as follows. Question: What are the three types of cash flows presented on the statement of cash flows?Īnswer: Cash flows are classified as operating, investing, or financing activities on the statement of cash flows, depending on the nature of the transaction. Describe the three categories of cash flows.
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