Glossary
Statement of Cash Flows
The statement of cash flows tracks the cash that moved in and out of a business over a period, sorted into operating, investing and financing activities. It explains why reported profit and the actual change in the bank balance can differ — a company can be profitable on paper yet short of cash. It rounds out a complete set of financial statements, and the same logic drives a forward-looking cash flow forecast used for day-to-day planning.
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