The statement of cash flows is a crucial financial statement that provides valuable insights into an entity's cash inflows and outflows over a specific period. This abstract explores the purpose, structure, and significance of the statement of cash flows. It discusses the three main categories of cash flows: operating activities, investing activities, and financing activities. Additionally, it highlights the importance of analyzing the statement of cash flows to assess an entity's liquidity, cash management, and ability to generate future cash flows. The statement of cash flows serves as a complement to the income statement and balance sheet, offering a comprehensive view of an entity's cash flow activities. Its primary purpose is to provide information about the sources and uses of cash during a specific reporting period, enabling stakeholders to evaluate an entity's ability to generate cash and its cash management practices.
Cash Outflows, Direct Method, Indirect Method, Net Cash, Non-Cash Activities, Operating Activities.
[Mr. Venkatesh Ashokababu (2022) Statement of Cash Flows: A Review Study] (ISSN 2347 - 5552). www.ijircst.org
Mr. Venkatesh Ashokababu
Assistant Professor, Masters In Business Administration, Presidency University, Bangalore, India,
Email Id:- ashokababu@presidencyuniversity.in
