1. Cash flow is classified as: a) Financing activities - are activities that result in changes in equity, size, capita and borrowing.b) Investment cash flow- are the acquisitions and disposal of fixed assetsc) cash flow from operating - are the principle revenue producing activities1) Similarities exist between GAAP and IFRS with respect to statement of cash flow. For example both require the statement of cash flow to report cash flows during the period broken out into operating activities, investing activities and financing activities.2) Both permit use of the direct and indirect methods of presenting cash flows from operating activities.3) They are also significant requirements which are essential to each of the above two methods (IRFS and GAAPS) when treating certain cash transactions.GAAPIFRSBank overdraftsBank overdrafts are not included in cash and cash equivalents instead they are accounted for as liabilities and changes in the overdraft balances are classified as financing cash flow.Bank overdrafts are included in cash and cash equivalents. In some countries bank overdrafts payable on demand constitute an integral part of an entity's cash management policies. In these circumstances bank overdrafts are included as a component of cash and cash equivalent.Interest and dividendInterest received or paid is classified as operating activities.Dividends received are classified as operating activities.Dividends paid are classified as financing activities.