International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. The statement captures both the current operating results and the accompanying changes in the balance sheet. Statement of cash flows: Sample statement of cash flows. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. In financial accounting, a cash flow statement, also known as statement of cash flows or funds flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. liquidity: An asset's property of being able to be sold without affecting its value the degree to which it can be easily converted into cash.solvency: The state of having enough funds or liquid assets to pay all of one's debts the state of being solvent.The cash flow statement is intended to provide information on a firm's liquidity and solvency, improve the comparability of different firms' operating performance, and to indicate the amount, timing, and probability of future cash flows.
In financial accounting, a cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating, investing, and financing activities.
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