Under generally accepted accounting principles, the cash flow statement can be prepared using one of two practices: the direct method or the indirect method.

The direct method uses gross cash receipts and gross cash payments to prepare cash flow statements. This includes money paid to suppliers, receipts from customers, interest and dividends received, ...

Cash flow statements are used to monitor the incoming and outgoing cash and cash equivalents of a company. See a cash flow statement example.

Learn financial statement analysis techniques, including horizontal, vertical, and ratio analysis, to assess company ...

Explore the fundamentals of cash flow statements, including their structure, significance, and the insights they provide into a company's financial health in 2025.

While the balance sheet shows how much cash the company currently has on hand, the cash flow statement shows whether or not the company is losing cash or increasing its cash over time.

The cash-flow statement helps investors figure out where a company is getting its money, how it is using it and if it has enough runway to operate and even survive.

What is a cash flow statement? A cash flow statement — also called a statement of cash flows — is a financial document showing how money flows in and out of a business. Common financial activities, ...