cash flow statement

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Cash Flow Statement

A statement every publicly-traded company must file with the SEC each quarter indicating all cash inflows and cash outflows from all sources, whether they are business activities or the company's investments. This is considered one indication among many of a company's financial health. A business activity may be reported as income if a company has agreed to a contract, even if no money has actually changed hands; a cash flow statement seeks to avoid this by showing how much cash the company has on hand. It is also called an application of funds statement.
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FRS 1 cash flow statementclick for a larger image
Fig. 19 FRS 1 cash flow statement.

cash flow statement

a statement which is included as part of a UK company's published annual report and accounts. The one used in the UK in 2002 is prepared in accordance with the provisions of FRS 1 (Financial Reporting Standard 1) . This shows where the finance came from and where it went out to during the period under review and helps to explain the movements in the cash and bank balances, as illustrated in Fig. 19. See also, FUNDS FLOW ANALYSIS, SOURCES AND USES OF FUNDS STATEMENTS.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
This includes accounting for the statement of cash flows. As a result, the sample used in this study will include the years 2006-2016 (first full year subsequent to the adoption of IFRS in the European markets to most current year available).
HISTORY AND TIMELINE OF THE STATEMENT OF CASH FLOWS
A statement of cash flows explains the change in cash and cash equivalents for the period of the statement.
After calculating the leverage and current ratios and comparing them to industry averages, the next step in the process is to review the statement of cash flow. The statement of cash flow summarizes the amount of cash generated or used by a contractor over a period of time and indicates the sources and uses of cash.
This indirect statement of cash flow starts with net income and makes adjustments to reconcile net earnings to net cash provided by operating activities.
Operating Activities: This section of the statement of cash flows reports the amount of cash generated or consumed by the operations of the business over a period of time.
Corporate treasury operations have come a long way from simple disbursement and collection to become a strategic arm of management, with a finger on the pulse of one of the most telling indicators of business fundamentals--the statement of cash flow. The authors provide advice on such modern technological aids as treasury management systems.
Question: What is the significance of the "cash flow from operating activity" on my customer's Statement of Cash Flow?

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