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What is the Cash Flow Statement1:14 with Michael Watson
Introducing the Cash Flow Statement
The cash flow statement, sometimes called the statement of cash flows,
is the third big financial statement we're gonna cover in this course.
The cash flow statement shows the actual movement of cash in and
out of the business over a period of time.
It's not a snapshot statement like the balance sheet.
It is a statement covering a period of time like the P&L.
The cash flow statement is divided into three main sections, operating,
investing, and financing.
Sometimes these sections are named slightly differently.
For example, instead of cash flows from operations,
it might read cash flows from operating activities or simply operating activities.
Don't get hung up on that.
Just know that there will always be three sections communicating the same
Also, I want to acknowledge that, in this stage of the course,
we will start to touch on some more advanced finance and accounting topics.
I am not gonna go into deep detail when we encounter some of these topics
as this is an introductory level course.
Let's dive in.
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