AWRA OpsHub Search

Accounting · Definition

Cash Flow Statement

A record of actual cash moving in and out, split by activity.

The cash flow statement separates cash movements into operating, investing and financing activities. It reconciles accounting profit to the change in the bank balance.

It exists because profit and cash are different things. A business can be profitable and still fail, and the usual culprits — inventory build-up and slow collections — are visible only here.

Related terms

Working Capital

The short-term capital tied up in running the business day to day.

Cash Conversion Cycle

CCC

How many days cash is tied up between paying suppliers and collecting from customers.

Income Statement

A summary of revenue, costs and profit over a period.

Accrual Accounting

Recognising income and expenses when they are earned or incurred, not when cash moves.

More in Accounting

Accounts Payable (AP) Accounts Receivable (AR) Accrued Expense Aging Report Bad Debt Provision Balance Sheet Bank Reconciliation Break-Even Point

Cash Flow Statement is not just a definition here

Accounting runs on this vocabulary every day in AWRA OpsHub — 51 of our 259 glossary terms describe things the platform actually does.

Take the product tour Book a demo