Tag's: Cash flow statement

The statement of cash flow In the previous lesson, we discussed the balance sheet and income statement. Now, we turn out attention to the statement of cash flow. The cash flow statement is interested in cash received and spent in business. It does not care about cousin Lia who used your services and promised to pay you next month when she gets paid. Cash is the lifeblood of any business.

A cash flow statement is an actual representation of transactions that has already taken place. A cash flow projection is a look into the future to predict what future cash flow will be. Difference between the cash flow statement and cash flow projection Since we know what transactions have taken place, a cash flow statement is typically less detailed than a cash flow projection. On the other hand a cash