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Accounting & Tax vocabulary · Financial Statements

Cash flow statement

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, cash flow statement means: A financial statement that shows how cash came into and went out of a business during a period, split into operating, investing and financing activities.

In Turkish: nakit akış tablosu

How it is used

Read together with the balance sheet and income statement. Analysts look closely at operating cash flow to see whether profit is turning into real cash. IFRS calls it the statement of cash flows.

Example sentences

  1. The company is profitable, but the cash flow statement shows that many customers are paying late.

  2. We prepare the cash flow statement using the indirect method.

Common collocations

  • operating cash flow
  • statement of cash flows
  • indirect method
  • free cash flow
  • balance sheetA financial statement that shows what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.
  • income statementA financial statement that shows a company's revenue, expenses and resulting profit or loss over a period, such as a quarter or a year.
  • net incomeThe profit left after all expenses, interest and taxes have been deducted from revenue for a period. If the result is negative, it is a net loss.
  • depreciationThe gradual spreading of the cost of a physical asset, such as a machine or vehicle, over the years it is used, recorded as an expense each period.

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.