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Finance & Accounting

Cash Flow Statement

Statement of cash movements during a period, classified into operating, investing and financing activities.

What it means

Required by AS-3 / Ind AS 7. Three sections: cash from operations (core business), cash from investing (asset purchase/sale), cash from financing (debt, equity, dividends). The cash flow statement reconciles opening cash to closing cash and is often more revealing than the P&L for liquidity-stressed businesses.

How Easedesk handles Cash Flow Statement

Easedesk generates cash flow statements using the indirect method, with automatic classification of journal entries into operating/investing/financing.

Related terms

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