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what are the different types of cash flow

what are the different types of cash flow

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Answer #1

There are 3 Types of Cashflows.

1. Cash flow from Operating Activities : It is the cashflow related to the operations. For example, the cashflow from sales and payment to suppliers for purchase of goods. In other words, it is the cashflow related to net income.

2. Cashflow from Investing activities : These include the cashflow related to non-current assets such as Plant, Property and Equipemnt etc. The loan made to other entities and cash generated from sale of building are some examples of theses.

3. Cashflow from Financing activities : These are cashflow realted to owner's equity and non-current liabilities. Dividend payement, proceeds of issue of stock etc. are some of the examples of cashflow from financing activities.

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