What is the objective of the cash flow statement? Describe the three cash flow classifications that are reported within

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What is the objective of the cash flow statement? Describe the three cash flow
classifications that are reported within the cash flow statement.

Answer: The objective of the cash flow statement is to explain the change in the cash balance
during a particular time period. The operating activities section describes the cash flows that
resulted from normal profit seeking activities. The investing activities section describes cash
flows resulting from acquisition and disposition of long-term assets and investments. The
financing activities section describes the cash flows resulting from issuance and retirement of
long-term debt and equity.