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Statement of Cash Flows

[ˈsteɪtmənt əv kæʃ floʊz]

What is the definition of Statement of Cash Flows?
A financial statement that categorizes and summarizes the cash inflows (receipts) and outflows (payments) during a specific period, divided into operating, investing, and financing activities. It provides insight into a company's liquidity and cash position, reconciling the beginning and ending cash and cash equivalents, as required by Generally Accepted Accounting Principles (GAAP).
Using Statement of Cash Flows in an Example

In the statement of cash flows, cash inflows from operating activities might include revenues from sales, while outflows include payments for goods and services. Investing activities could reflect cash used for purchasing equipment, and financing activities might show cash received from issuing stocks or bonds.

Using Statement of Cash Flows in a sentence

During the quarterly financial review, the CFO detailed changes in the statement of cash flows, highlighting how strategic adjustments had improved the company's cash position.

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