A cash flow statement consists of three sections: operating, investing and financing. Companies report investing and financing activities directly on a cash basis, but often use the indirect method to ...

General accepted accounting principles (GAAP) recommend that businesses use an accrual method of accounting. This means that the income statement reflects expenses and income earned but not yet ...

Just about everyone has heard the phrase "cash is king" in investing. That's true for business finances, too. Cash flow is how businesses pay their employees, buy materials and cover basic expenses.

While there are many financial metrics to track in business, operating cash flow is among the most crucial. Many entrepreneurs look at these numbers as an indication of how well (or poorly) their ...