What is a Cash Flow Statement in Accounting?
A cash flow statement in accounting is a financial statement that provides information about the cash inflows and outflows of a business during a specific period. It analyzes how well a company manages its cash position, which is crucial for its operations and growth. The cash flow statement is divided into three main sections: operating activities, investing activities, and financing activities. By examining these sections, stakeholders can assess the sources and uses of cash within the business and make informed decisions about its financial health.
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