Summary
The cash flow statement is a financial statement that groups together teacher data the cash inflows and outflows of a company at a given time;
He has several interests such as diagnosing financial health or understanding the management of the company's cash flow;
There are 3 categories of flows: cash flow from operations ( CFO ), cash flow from investments ( CTI ) and cash flow from financing ( CTF );
The cash flow statement can be done using 2 methods: direct or indirect .
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Definition of a Cash Flow Statement
As a reminder, cash flows refer to both operations which increase resources ( receipts ) and operations which consume cash ( disbursements ).
The cash flow statement is the document that groups together all these flows at a given moment. It is an aid for companies that wish to follow their real movements of money: how much money comes into the company's accounts, and how much money goes out.
Preparing a cash flow statement is not mandatory . Companies have the choice of producing it or not, unlike annual accounts , which must be produced at each accounting close.
