What is Cash flow statement?
Cash flow statement: Report of cash coming in and out from operations, investing and financing.
Where Cash flow statement fits
Cash flow statement is part of Financial Statements in Accounting. Three statements tell the story: the balance sheet is a snapshot of assets, liabilities and equity; the income statement shows profit; the cash flow statement tracks real money.
Practical tip
Read all three together; one alone can mislead.
Related terms
- Balance sheet
- A snapshot of assets, liabilities and equity on one date.
- Income statement
- Shows revenue, costs and profit over a period.
- Assets
- Things a company owns that have value.
- Liabilities
- What a company owes to others.
- Equity
- The owners' share: assets minus liabilities.
- Operating profit
- Profit from core operations before interest and taxes.
Formulas you will use with it
Test yourself
Which term means: “Report of cash coming in and out from operations, investing and financing.”?
Cash flow statement · Liabilities · Operating profit
Answer: Cash flow statement
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