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.
