Definition
Cash Flow Statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.
Usage and Context
Businesses use the cash flow statement to understand how well they manage money. It shows cash coming in and going out because of business activities.
Frequently asked questions
What is the cash flow statement of a financial statement? The cash flow statement is part of a company`s financial reports. It tracks the flow of money in and out during a specific period.

Can you make a cash flow statement from a balance sheet and income statement? Yes, you can create a cash flow statement using a balance sheet and income statement. They provide the needed details on cash movement.

What is the income statement and the statement of cash flow? The income statement shows a company`s earnings and expenses. The cash flow statement shows how cash changes because of those earnings and expenses.
Related Software
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Benefits
A cash flow statement helps businesses see if they are making more money than they spend. It`s key for managing money wisely.
Conclusion
A cash flow statement is crucial for understanding a business`s cash health. It helps in making smart financial decisions.
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