The three main categories of the statement of cash flows are: Operating Activities, Investing Activities, and Financing Activities. The reason why these categories were chosen is because they represent the three principal types of business activities.
Work Step by Step
A cash flow statement is the financial statement that shows how changes in balance sheet accounts and income affect the cash and the cash equivalent of a corporation. Since the three main types of business activities are operating, investing, and financing activities, these are the items that would go on the statement of cash flows.