As mentioned previously there are two ways to build a cash flow statement: the direct method and the indirect method. Both methods yield the same net cash flow but they differ in presentation and ...

Under generally accepted accounting principles, the cash flow statement can be prepared using one of two practices: the direct method or the indirect method.

Direct vs. indirect methods of preparing a cash flow statement: The direct method focuses on going through individual transactions and compiling income and expenses.

Explore the fundamentals of cash flow statements, including their structure, significance, and the insights they provide into a company's financial health in 2025.

What is a cash flow statement? A cash flow statement — also called a statement of cash flows — is a financial document showing how money flows in and out of a business. Common financial activities, ...

While the balance sheet shows how much cash the company currently has on hand, the cash flow statement shows whether or not the company is losing cash or increasing its cash over time.

Learning how to create and read a cash flow statement, as well as understanding important cash flow ratios, can help you make better business decisions.