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A cash flow statement summarizes the amount of cash and cash equivalents entering and leaving a company. The CFS highlights a company's cash management, including how well it generates cash.
The purpose of a cash flow statement is to provide a detailed picture of what happened to a business’s cash during a specified period, known as the accounting period. It demonstrates an organization’s ability to operate in the short and long term, based on how much cash is flowing into and out of the business.
What Is a Cash Flow Statement (CFS)? A cash flow statement (CFS) is a financial statement that captures how much cash is generated and utilized by a company or business in a specific time period.
The cash flow statement simply shows the inflows and outflows of cash from your business over a specific period of time, usually a month. Let's take a closer look at what cash flow statements do for your business, and why they're so important.
The statement of cash flows, also called the cash flow statement, is the fourth general-purpose financial statement and summarizes how changes in balance sheet accounts affect the cash account during the accounting period.
A cash flow statement shows how cash entered and left a business during a specific period. Here’s how to create a cash flow statement.
A cash flow statement (CFS) is a financial statement primarily intended to provide information about the cash receipts and cash payments of a business during the period of time covered by the income statement.
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