The cash flow statement is a financial statement that reflects the impact of an enterprise’s operating activities, investment activities and financing activities on its cash and cash equivalents in a certain period of time. It describes in detail the cash flow generated by the company’s operation, investment and financing activities.
In a sense, the cash flow of an enterprise is more important and true than income and profit. Generally speaking, the book income and profit of an enterprise are relatively easy to be manipulated by people, and the cash flow is the closest to reality. The cash flow of an enterprise is normal, sufficient and stable, and can pay all debts due. The company’s capital operates orderly, the less uncertainty, the less risk, and the higher its credit.