Under generally accepted accounting principles, the cash flow statement can be prepared using one of two practices: the direct method or the indirect method.

Direct vs. indirect methods of preparing a cash flow statement: The direct method focuses on going through individual transactions and compiling income and expenses.

Learn financial statement analysis techniques, including horizontal, vertical, and ratio analysis, to assess company ...

What is a cash flow statement? A cash flow statement — also called a statement of cash flows — is a financial document showing how money flows in and out of a business. Common financial activities, ...

Explore the fundamentals of cash flow statements, including their structure, significance, and the insights they provide into a company's financial health in 2025.

While the balance sheet shows how much cash the company currently has on hand, the cash flow statement shows whether or not the company is losing cash or increasing its cash over time.

The balance sheet, income statement, and cash flow statement: these offer an inside look at a company. Browse Investopedia’s expert-written library to learn more.