The function of the cash flow statement is to provide information on the state and use of the company's liquid assets, that is to say on receipts and disbursements during a period. In addition, it makes it possible to evaluate the net variations in liquidity according to the company's activities.

Activities to assess net changes are grouped into the following three categories:

  • operating activities;
  • investing activities;
  • fundraising activities

This form of presentation allows reconciliation of the opening and closing cash balances of the business.

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