I have an assignment to complete, and I am having a hard time understanding the cash flow statement to the fullest and how it reflects the firm's financial status. Does anyone have a better way of explaining this to me than my text? My degree is not accounting, but for some reason I thought it would be fun to take this as a lagnippe class, lol. Thanks in advance!
USA Cash Flows
- Thread starter Barbara
- Start date
When you use pure cash accounting, the resulting financial statements reflect actual inflows and outflows of cash. With accrual accounting, it is possible to show a great deal of revenue but with little cash inflow. The cashflow statement addresses that issue and tracks in detail the flow of cash