A company reports revenues and expenses on its income statement. Since most companies use accrual accounting, the income statement reveals little about cash flowing into and out of the business. To ...

The statement of cash flows is one of the financial statements investors rely on to gauge a company's financial strength. Strong cash flow puts the company in a good position to expand its business, ...

The SEC’s Office of Chief Accountant appears to be taking a hard look these days at statements of cash flows. In “The Statement of Cash Flows: Improving the Quality of Cash Flow Information Provided ...

Cash flow is essential to running a successful business. Understanding your company’s liquidity is nonnegotiable, and a cash flow statement gives you clear visibility into how money moves through your ...

In April 2004, FASB and the International Accounting Standards Board (IASB) created a joint project on financial statement presentation. The project is part of the memorandum of understanding between ...

Financial statements are key to understanding the underlying drivers of a business—i.e., how your business is growing, what the margin profile is, how much cash it is generating and using and from ...

Learn how to tell if your business could be facing a cash crunch—and what to do about it ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Andy Smith is a Certified Financial ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...