Cash Flow Classifier Game
A cash flow statement shows how money moves in and out of a business through Operating (CFO), Investing (CFI), and Financing (CFF) activities.
How to Play: Drag each transaction into CFO, CFI, or CFF. Results appear instantly.
Transactions (Drag Me)
Operating (CFO)
Investing (CFI)
Financing (CFF)
Understanding Cash Flow Classification
The cash flow statement shows how money moves in and out of a company. It has three sections:
1. Operating Activities (CFO): Day-to-day business transactions like sales, expenses, taxes, interest.
2. Investing Activities (CFI): Buying or selling long-term assets: machinery, property, investments.
3. Financing Activities (CFF): Money raised or returned to lenders/shareholders: loans, share issues, dividends.
This game helps beginners understand how each transaction is classified. Correct classification is essential for analysing business cash health.
Cash flow is one of the most important parts of fundamental analysis.
Even profitable companies fail if they cannot manage cash properly.
This game teaches beginners how to identify which business activities generate or use cash.
Understanding CFO, CFI, and CFF helps you analyze:
- Business health
- Quality of earnings
- Liquidity strength
- Future sustainability
✔ 1. Operating Activities (CFO)
These are the day-to-day cash transactions related to core business operations.
Examples include:
- Cash received from sales
- Interest paid
- Taxes paid
- Cash paid to suppliers & employees
CFO shows whether the business can generate cash from normal activities.
✔ 2. Investing Activities (CFI)
These involve buying or selling long-term assets.
Examples include:
- Buying machinery
- Selling equipment
- Investing in another company
Positive CFI often means the business is selling assets.
Negative CFI usually means the business is investing for growth.
✔ 3. Financing Activities (CFF)
These involve raising or returning capital to lenders and shareholders.
Examples:
- Issuing shares
- Receiving a bank loan
- Repaying debt
- Paying dividends
CFF explains how the company funds its operations and growth.
✔ 4. Why Correct Classification Matters
Correctly understanding CFO, CFI, and CFF helps investors:
- Identify whether profit is backed by real cash
- Understand if a company is reinvesting wisely
- Detect debt dependence and dividend quality
- Assess long-term survivability
This game teaches these classifications in a fun, interactive way — perfect for beginners.