CASH FLOW STSTEMENT

a cash flow statement or statement of cash flows is a financial statement that shows a company's flow of cash .The money coming into the business is called cash inflow and money going out from the business is called cash outflow. money (sources and uses of cash) during a time period (often monthly or quarterly). The statement shows how changes in balance sheet and income accounts affected cash and cash equivalents, and breaks the analysis down according to operating, investing, and financing activities. As an analytical tool the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements.
People and groups interested in cash flow statements include
accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses
potential lenders or creditors, who want a clear picture of a company's ability to repay
potential investors, who need to judge whether the company is financially sound
potential employees or contractors, who need to know whether the company will be able to afford compensation
Contents[hide]
1 Purpose
2 History and variations
3 Cash flow activities
3.1 Operating activities
3.2 Investing activities
3.3 Financing activities
4 Disclosure of noncash activities
5 Preparation methods
5.1 Direct method
5.2 Indirect method
5.2.1 Rules
6 See also
7 Notes and references