Statement of Cash Flows

Accounting Terms Dictionary

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Statement of Cash Flows

The Statement of Cash Flows keeps track of the actual cash money a business has.

The Statement of Cash Flows ignores accounts receivable and accounts payable and tracks only the cash actually received from customers and the cash actually spent to pay bills. It tracks the cash going in and out of the business and classifies that cash as either ordinary business activities, investing activities or financing activities.

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