ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The cash flow statement shows the source of cash and helps you monitor incoming and outgoing money. Incoming cash for a business comes from operating activities, investing activities and financial activities.

Detailed explanation-2: -A cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.

Detailed explanation-3: -A personal cash flow statement presents income and outflows of cash for a given time period, such as a month.

Detailed explanation-4: -A cash flow statement lists cash inflows and cash outflows while the income statement lists income and expenses. A cash flow statement shows liquidity while an income statement shows profitability. Many income items are also cash inflows.