An entity presents its cash flows from operating, investing and financing activities in a manner that best matches its activity. Classification by activity provides information that allows users to evaluate the impact of the respective activities on the financial position of the entity and the value of cash and cash equivalents. This information can also be used to evaluate the relationships that arise between the respective activities. A single transaction may include cash flows that are classified differently. The value of cash flows from operating activities is a key indicator of the extent to which the entity's activities have generated sufficient cash flows to repay the loans, to maintain the entity's operating capacity, to pay dividends and to make new investments without resorting to external sources of financing. Information on the specific components of historical operating cash flows, along with other information, is useful for forecasting future operating cash flows. They generally result from transactions and other events that determine profit or loss. The research methodology is descriptive and qualitative, making a comparison between the two methods of cash flow: the direct method and the indirect method in the operating activity.