cash-flow-statement

Vocabulary Word

Definition

'Cash-flow-statement' is a financial document that tells you how a company earned and spent its money over a time period. It's like a detailed money diary for a business.

Examples in Different Contexts

In financial reporting, a 'cash flow statement' is a document that shows how changes in balance sheet accounts and income affect cash and cash equivalents. A CFO might say, 'Our cash flow statement provides a clear picture of the company's liquidity over the fiscal year.'

Practice Scenarios

Tech

Scenario:

With the steep production costs and lower than expected sales, we need to take a closer look at our cash resources.

Response:

Indeed, a thoughtful study of the cash-flow-statement can provide insight into our cash position and help us devise necessary adjustments.

Accounting

Scenario:

The balance sheet looks balanced, and the income statement shows healthy profit. Nevertheless, we need a lucid view of our liquidity.

Response:

Point noted, let's examine our cash-flow-statement to get a comprehensive assessment of our cash situation.