| A | B |
|---|
| Cash flows | The cash receipts and cash payments of a company |
| Statement of Cash Flows | A statement that summarizes cash receipts and cash payments resulting from business transactions during a fiscal period. Each of the sections is calculated by analyzing the information presented on the income statement, balance sheet and the statement of stockholders’ equity. |
| Operating activities | The cash receipts and payments necessary to operate a business on a day-to-day business |
| Investing activities | Cash receipts and cash payments involving the sale or purchase of assets used to earn revenue |
| Financing activities | Cash receipts and payments involving debt or equity transactions |
| Cash inflows | Cash receipts (added) |
| Cash outflows | Cash payments (subtracted) |
