GASBS 9 aims to enhance the transparency and usefulness of financial statements by requiring government entities to report cash flow statements. The standard cash flow is broken up into three categories: Operating activities, Capital financing activities, and Noncapital financing activities. The operating activities section of the statement of cash flows is used to portray cash activities that relate to the day-to-day operations of the governmental entity. An example of operating activities would be taxes collected. Capital financing activities show cash inflows and outflows related to acquiring, disposing, and maintaining capital assets such as buildings or equipment. A common cash outflow under capital financing would be a government entity purchasing or improving a piece of equipment. Lastly, noncapital financing activities are those that involve cash borrowing, lending, and investing. Adhering to the rules of GASBS 9 is very important for government entities as it ensures they are reporting the inflows and outflows of cash accurately