A cash flow statement consists of three sections: operating, investing and financing. Companies report investing and financing activities directly on a cash basis, but often use the indirect method to ...

General accepted accounting principles (GAAP) recommend that businesses use an accrual method of accounting. This means that the income statement reflects expenses and income earned but not yet ...

Start by looking at cash flow from operations, the section that tells you how much money the company’s main business is ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Andy Smith is a Certified Financial ...