d. The statement of cash flows reflects cash flows from operations and from borrowings,
but it does not reflect cash obtained by selling new common
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.
Essentially, the cash flow statement is concerned with the flow of cash in and
cash out of the business. The statement captures both the current operating
results and the accompanying changes in the balance sheet
. 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.
International Accounting Standard 7 (IAS 7), is the International Accounting Standard
that deals with cash flow statements.