Which statement is true regarding the classification of cash flows in a cash flow statement?

It highlights the effects of various activities on cash and cash equivalents

The classification of cash flows in a cash flow statement is primarily aimed at highlighting the impact of different categories of activities on the cash and cash equivalents of an enterprise. It provides insight into how operating, investing, and financing activities contribute to the movement of cash inflows and outflows, and consequently, to the overall financial position of the business.