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Jun 07, · Cash Flow Statement is a financial report to provide relevant information about the cash receipts and disbursements the company has in particular accounting period. Information from cash flow is important to know the liquidity, financial flexibility and overall performance of the company.
This statement is used to complement other financial report. The Cash Flow Statement, or Statement of Cash Flows, summarizes a company' s inflow and outflow of cash, meaning where a business' s money came from ( cash receipts) and where it went ( cash paid).
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By " cash" we mean both physical currency and money in a checking account. The cash flow statement is a standard financial statement used along with the balance sheet and income statement. How to Prepare a Cash Flow Statement.
The statement of cash flows is generally prepared using two different methods: the direct method and the indirect method. Both result in the same financial statement showing how financial transacations affected would have affected the.
direct vs indirect cash flow method want to look at their overall performance over a period of time. Aug 08, · What is a Cash Flow Statement?
In financial accounting, a Cash Flow Statement, also known as Statement of Cash Flow, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash.