Cash Flow Statement flashcards are a helpful study tool designed to assist students in understanding the concept of cash flow statements. These flashcards feature important terms, related to cash flow statements to aid in memorization and comprehension.
A Cash Flow Statement is a financial statement that shows the inflows and outflows of cash within a business over a specific period of time. It provides valuable information about how a company generates and uses cash, helping stakeholders assess its financial health and liquidity. Understanding cash flow statements is crucial for making informed decisions about investments, budgeting, and strategic planning.
Learn Cash Flow Statement With Flashcards
{"stat":1,"data":{"id":119,"deckName":"Cash Flow Statement","front":"term","cards":[{"id":2115,"front":"Operating activities","back":"Operating activities are the day-to-day activities of a business that generate revenue."},{"id":2116,"front":"Investing activities","back":"Investing activities: Using money to buy assets like stocks, bonds, or real estate with the hope of making a profit."},{"id":2117,"front":"Financing activities","back":"Activities related to obtaining or repaying funds for a business."},{"id":2118,"front":"Net cash flow","back":"Net cash flow is the total amount of money moving in and out of a business."},{"id":2119,"front":"Cash equivalents","back":"Cash equivalents are assets that are easily converted into cash, such as money market funds or Treasury bills."},{"id":2120,"front":"Cash inflows","back":"Cash inflows are the money that comes into a business or individual."},{"id":2121,"front":"Cash outflows","back":"Cash outflows are when money leaves a business or person's account."},{"id":2122,"front":"Depreciation","back":"Depreciation: the decrease in value of an asset over time."},{"id":2123,"front":"Amortization","back":"Amortization: Paying off a loan over time with regular payments."},{"id":2124,"front":"Interest received","back":"Money earned from lending out money or depositing funds in a bank."},{"id":2125,"front":"Interest paid","back":"Interest paid: Money paid in exchange for borrowing money."},{"id":2126,"front":"Dividends received","back":"Money paid to shareholders by a company from its profits."},{"id":2127,"front":"Dividends paid","back":"Dividends paid: Money given to shareholders by a company based on their ownership of stock."},{"id":2128,"front":"Changes in working capital","back":"Changes in working capital refer to the increase or decrease in a company's current assets and liabilities."},{"id":2129,"front":"Non-cash activities","back":"Non-cash activities are transactions that do not involve physical money."}]}}
quick facts
- The cash flow statement shows how much money a company is bringing in and spending during a specific time period.
- It is divided into three main sections: operating activities, investing activities, and financing activities.
- The cash flow statement helps investors and analysts understand how a company is managing its money.
- Positive cash flow means a company is bringing in more money than it is spending, while negative cash flow means it is spending more than it is bringing in.
- The cash flow statement is an important financial document that helps companies make strategic decisions about their future financial health.
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