What is a cash flow statement

Cash flow statement is also known as statement of cash flows in accounting. It is a financial statement that organizes and shows how the cash are generated and the changes in balance sheet accounts. It also illustrates how the income affects cash and its equivalents. It breaks down analysis to investing, operating and financing events. Cash flow is very important specially on the business’ flow of cash in and out. It covers up current operating results and accompanying changes in the statement of financial position or balance sheet.

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