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cash flow statement

A Cash Flow Statement is a financial report that tracks the flow of cash in and out of a business over a specific period. It has three main sections: operating activities (cash from day-to-day business), investing activities (cash spent or received from buying or selling assets), and financing activities (cash from loans or investments). This statement helps stakeholders understand how a company generates and uses its cash, providing insights into its financial health and ability to meet obligations, invest in growth, and ensure liquidity.

Additional Insights

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    A cash flow statement is a financial document that tracks the cash entering and leaving a business over a specific period. It categorizes cash flows into three sections: operating activities (day-to-day business operations), investing activities (buying or selling assets), and financing activities (raising or repaying funds). This statement helps stakeholders understand how well the company generates cash to fund its operations, invest in growth, and meet financial obligations. It provides a clear picture of liquidity, revealing if a business can sustain itself or face financial challenges.