Statement of cash flows
Financial Accounting glossary · Statement of Cash Flows
Definition
Financial statement reconciling beginning to ending cash through three sections: operating, investing, financing activities.
Statement of cash flows in plain English
This is basically the company's bank-account story for the year: how much cash it started with, everything that came in and went out, and how much it ended with. It sorts every cash move into three buckets — operating (cash from actually running the business, like sales and paying workers), investing (buying or selling big long-term things like equipment), and financing (borrowing money, paying back loans, or dealing with owners/investors). It matters because a company can look profitable on paper but still run out of actual cash, and this statement is where you catch that.
Practice Statement of cash flows
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