Cash Flow Statement
The definition and function of the cash flow statement is that it is designed to specifically report the cash flow of a
The final record of the statement will show the net profit or liability for the period. In a standard format, the
statement is broken up into three areas.
Below is a represent of the financial areas that the statement covers:
A cash flow statement is one portion of the financial statements that are required for incorporated businesses'
financial reporting methods as prescribed by F.A.S.B., ( the financial accounting standards board) The function of
the income statement is to determine the ongoing financial health of the business during the spending cycles.
The statement exhibits the actual transactions that are being made. In order to create an accurate depiction of the
financial transactions, the statement is used in conjunction with the balance sheet and the income statement.