Thursday, March 21st 2019

Cash Flow Statement

Cash Flow Statement Meaning:
In accounting terminology, the term Cash Flow Statement refers to a summary of the influx and outlay of cash for a company over an accounting period. Cash Flow statements reflect the origin of the cash, as well as where money was spent.

Cash Flow Statement Example:
For example, a typical Cash Flow Statement will contain accounting information which would give indications on how much money can be expected at what particular times and how best to budget the expenditures. A Cash Flow Statement is composed of operating activities, investing activities and financing activities which together represent the net change in the company’s cash flow for the particular accounting period. Cash flow from operating activities makes up one of the key elements that investors examine on a Cash Flow Statement. The Cash Flow Statement, the Income Statement and the Balance Sheet make up the most crucial documents needed for the evaluation of a company.

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