Statement of Cash Flows

The statement of cash flows is one of the main financial statements in the financial report. It explains the cash flows with the sources and uses of cash according to operational activities, investment activities, financing activities, and some supplementary information for the period under report. It is useful in giving a clear picture of the entity’s cash flows, especially since companies use accrual basis accounting. A statement of cash flows to give another clear picture of cash flow away from the accrual basis of accounting

The statement of cash flows explains cash inflows and outflows classified into operating, investing, and financing activities for the reporting period.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **Statement of Cash Flows** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.