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Income, Available Cash, Etc  Form

Income, Available Cash, Etc Form

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Instructions and help about Income, Available Cash, Etc

Today we'll talk about the cash flow statement. It's one of the three main financial statements, but often overlooked. Sure, the income statement provides information on revenue and profits over a certain period of time, and the balance sheet gives a snapshot of the financial health at a certain point in time. But it's the cash flow statement where you can find out how effective a business is in managing its cash, and what it spends it on. And in the end, cash is the lifeblood of any business. If you can't pay your employees, your vendors or your taxes anymore, it's game over. (computerized electronic music) So let's get started. (upbeat music) In a previous video we talked about the difference between cash and accrual accounting. We said it's important to understand that profits and cash can be two different things. Profit is defined as revenue minus expenses. And in accrual accounting we report revenue when it's earned,

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