Dear Lorin,
It is not really important how to classify them in this course.
I find it useful when it comes to pricing and risk. Operating cash flow shares the same risk (often), while investment cash flows might bear very different types of risks.
In terms of accounting, they are considered as operating. Honestly, I am not sure why, but I feel it is because accounting reports occur at a given time and want to give a long-term perspective of the firm. A firm that sold many items and did not pay anything to suppliers (it pays the day after reporting) will seem like a very efficient firm, which obviously is not.
It is not really important how to classify them in this course.
I find it useful when it comes to pricing and risk. Operating cash flow shares the same risk (often), while investment cash flows might bear very different types of risks.
In terms of accounting, they are considered as operating. Honestly, I am not sure why, but I feel it is because accounting reports occur at a given time and want to give a long-term perspective of the firm. A firm that sold many items and did not pay anything to suppliers (it pays the day after reporting) will seem like a very efficient firm, which obviously is not.