![]() ![]() In accrual accounting, some transactions that impact a company's cash position are not always easy to recognize. Understanding what the cash-flow statement is telling us If you need to take a step back and brush up on the basics of investing, head on over to our Broker Center, where we can help you get started. Therefore, the cash-flow statement must always balance with the cash account from the balance sheet.Īre you with us so far? Then read on. Cash flow is, by definition, the change in a company's cash from one period to the next. The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet.
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