Final answer:
The statement of cash flows classifies items as operating, investing, and financing.
Step-by-step explanation:
The statement of cash flows classifies items as operating, investing, and financing. These categories are used to analyze the cash inflows and outflows of a company. Operating activities refer to the day-to-day operations of the business, such as sales and expenses. Investing activities involve the acquisition and disposal of long-term assets, such as property and equipment. Financing activities relate to the company's financing sources, such as issuing debt or equity.