Cash flow report

The cash flow report is based on the monetary base, and cash flows are sorted under business, investment, and financial activities. It is possible to compile it according to the direct or indirect method, which greatly depends on the extent of the business activity and the quality of information which is enabled by the business solution used. The purpose of the report is to show how a company earns and spends money and cash equivalents, and to enable the evaluation of the ability of a company to achieve future cash flow, i.e. to fulfill its duty to creditors and capital owners.

The cash flow report constitutes the Annual Financial Report for mid-sized and large entrepreneurs.

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