Editing Cash flow statement (section)

{{short description|Financial statement}}
{{Accounting}}
In [[financial accounting]], a '''cash flow statement''', also known as '''''statement of cash flows''''',<ref name="helfert-a">{{Cite book
  | last       = Helfert
  | first      = Erich A.
  | author-link = Erich A. Helfert
  | title      = Financial Analysis - Tools and Techniques - A Guide for Managers
  | chapter    = The Nature of Financial Statements: The Cash Flow Statement
}}</ref> is a [[financial statements|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 out of the business. 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.

People and groups interested in cash flow statements include:
* Accounting personnel, who need to know whether the organization will be able to cover payroll and other immediate expenses
* Potential [[lender]]s or [[creditor]]s, who want a clear picture of a company's ability to repay
* Potential [[investor]]s, who need to judge whether the company is financially sound
* Potential employees or contractors, who need to know whether the company will be able to afford compensation
*[[Company Director]]s, who are responsible for the governance of the company, and are responsible for ensuring that the company does not trade while [[Insolvency|insolvent]]
* [[Shareholder]]s of the company.