![]() It determines the cash generated or consumed by your business in a given period. Hence, cash flows measure the net transfer of cash and cash equivalents of a business. Lastly, investing activities include cash activities related to non-current assets. In the case of operating activities, the cash activities are related to net income. These are the 3 types of cash flow activities.Ĭash flow in financing activities involves cash activities related to non-current liabilities and owner’s equity. Typically characterized, cash flows are found in operations, investing and financing functions of the business. What is Cash Flow? Cash flow refers to the money moving in and out of the business.
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