What is cash flow statement

Question

Accepted Answer

The cash flow statement is a financial statement that shows the inflows and outflows of cash in a company over a specific period.

It provides information about the cash generated from operating activities, investing activities, and financing activities.
Operating activities include cash received from sales, payment to suppliers, and payment to employees.
Investing activities include cash used for purchasing or selling assets, such as property, plant, and equipment.
Financing activities include cash received from issuing stocks or bonds, and cash paid for dividends or debt repayment.
The cash flow statement helps assess a company's liquidity, solvency, and ability to generate future cash flows.
Example: A positive cash flow from operating activities indicates that a company is generating enough cash to cover its expenses and invest in growth.
Example: A negative cash flow from financing activities may indicate that a company is borrowing heavily to fund its operations.

Top Northern Trust Operating Services Financial Analyst 1 interview questions & answers