MANAGEMENT

Detailed explanation-1: -A cash flow statement is a financial statement that shows how cash entered and exited a company during an accounting period. Cash coming in and out of a business is referred to as cash flows, and accountants use these statements to record, track, and report these transactions.

Detailed explanation-2: -An income statement, also known as a P&L, is one of the most powerful examples as it gives you a detailed snapshot of your company’s financial performance and tells you how profitable your business was in a specific period of time.

Detailed explanation-3: -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-4: -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-5: -There are three main financial statements: income statement, balance sheet, and cash flow statement. Each type of financial statement reports varying information during a period (e.g., month, quarter, etc.). Using statements gives you insight into several areas of your business’s financial health.