Question

what is the difference between a financial statement of cash flows and an accounting statement of cash flows?

Answer 1

To a business owner.

Cash flow is cash flow.

Then, what is financial cash flow? What is accounting statement of cash flow?

Financial is a very board term that denotes money.

So, Financial Cash Flows, could be a normal daily lingo between certain groups of people.

While, Accounting Statement of Cash Flow, when use in this manner, denote the accounting side of cash flow, and is one of the Financial Statements that a company produces for regulatory purpose.

Financial Statements of a company consists of the Balance Sheet, Profit and Loss Statement, and the Cash Flow Statement (some call it the Statement of Cash Flow).

To understand better, let's have a look below :

The cash flow statement and the income statement are integral parts of a corporate balance sheet. The cash flow statement or statement of cash flows measures the sources of a company's cash and its uses of cash over a specific time period. The income statement measures a company's financial performance, such as revenues, expenses, profits, or losses over a specific time period. This financial document is sometimes called a statement of financial performance. An income statement shows whether a company made a profit, and a cash flow statement shows whether a company generated cash.

A cash flow statement is generally divided into three main parts:

1. Operating activities: Analyzes a company’s cash flow from net income or losses by reconciling the net income to the actual cash the company received from or used in its operating activities.
2. Investing activities: Shows the cash flow from all investing activities, which generally include purchases or sales of long-term assets, such as property, plant, and equipment, as well as investment securities.
3. Financing activities: Shows the cash flow from all financing activities, such as cash raised by selling stocks and bonds, or borrowing from banks.