Definition: An accounting statement that forecasts cash receipts and disbursements for a specified period. The statement is used for planning purposes to determine if a business will need to borrow money in order to maintain its operations during times of heavy expenses or low sales. Often accommpanied by a a graph or chart to represent the data at a glance.
Also Known As: Statement of Cash Flows
Examples:
Without a cash flow statement a home business operator may run out of money to pay bills during times of the year when sales can be expected to slow.
