“The Statement of Cash Flows” from DWD’s Mission Minded Blog

The Statement of Cash Flows written by Carrie Minnich on Mission Minded,the nonprofit blog from local CPA and Advisor firm Dulin, Ward & DeWald, offers a clear overview of this difficult to read financial statement.

Here’s a snippet –

Carrie Minnich, DWD

“The statement of cash flows is one of the hardest in a set of financial statements for a reader to understand; however, it can be a powerful tool used to examine the actual cash flowing in and out of an organization.  The statement of activities shows what the organization earned and owes while the statement of cash flows shows what was actually collected and spent.

The statement of cash flows is a requirement of financial statements prepared in accordance with generally accepted accounting principles.  This statement reports an organization’s cash generated and used during a specific period, classified into operating activities, investing activities and financing activities.

Since the statement of activities is prepared under the accrual basis of accounting, some of the revenues included may not have been collected yet and some of the expenses may not have been paid yet.  Basically the statement of cash flows reconciles … ”

click through to the Mission Minded Blog to read more.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s