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What is The Cash-Flow Statement? Give an example?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 2MC

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Question

What is The Cash-Flow Statement? Give an example?

Expert Solution

Step 1

A statement that helps in providing detailed information regarding the cash inflow as well as the cash outflow in an entity during a specified period. It reflects how changes in a balance sheet, as well as a change in income, will have an effect on cash/cash equivalents and are subdivided into 3 parts for the analysis.

It involves cash flow from 3 different activities that are:

Operating activities
Investing activities
Financing activities

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