Cash receipts and cash payments are classified as operating,investing,or financing activities on the statement of cash flows.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as selling products, providing services, and paying salaries, which generate cash flows from the primary revenue-producing activities.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, such as issuing debt or equity, repaying loans, and paying dividends.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not relating directly to the entity's usual line of business.