Cash flow statement

What is Cash flow statement?

A cash flow statement is a financial statement that shows the sources and uses of a company's cash during a specific period of time.

A financial statement that shows total data is a cash flow statement. including all cash outflows that cover the cost of trade activities and finances throughout the course of a given time as well as cash inflows that a business receives from its ongoing progress and outside sources of financing. In other terms, it is a financial statement that calculates the amount of cash that a company will create or use over a given period of time.

As was already noted, a company’s cash flow statement provides information on how its cash equivalents and cash position have changed over the course of an accounting period. This modification incorporates the pursuits into running, finance, and investing.

Because it excludes future transactions of cash listed on credit, it differs from the balance sheet and income statement. Money does not equal net income, despite appearing to do so on the income statement and balance sheet, which includes both cash sales and credit transactions.