Type of Accounting Types of cash flow

Question

Accepted Answer

There are three types of cash flow: operating, investing, and financing.

Operating cash flow: cash generated from a company's core business operations
Investing cash flow: cash used for investments in long-term assets such as property, plant, and equipment
Financing cash flow: cash used for financing activities such as issuing stocks or bonds, paying dividends, or repurchasing shares
Examples: Operating cash flow - revenue from sales, Investing cash flow - purchase of new equipment, Financing cash flow - payment of dividends