Cash in the cash flow statement is

Cash in the cash flow statement includes cash on hand, bank deposits and other monetary funds.

The cash flow statement is a statement reflecting the inflows and outflows of cash and cash equivalents of an enterprise during a certain accounting period. Cash is the cash on hand of an enterprise as well as deposits that can be readily used for payment, and deposits that cannot be readily used for payment are not cash. Cash on hand is cash held by an enterprise that can be readily used for payment, i.e., with what is included in the cash account in accounting.

Bank deposits refers to the enterprise in the bank or other financial institutions at any time can be used for payment of deposits, that is, with the accounting in the bank deposits account included in the content is basically the same. The difference between them is the existence of banks or other financial institutions can not be readily available for payment of deposits, should not be used as cash in the statement of cash flows, such as fixed-term deposits that can not be withdrawn at any time. However, time deposits that can be withdrawn with advance notice to the bank or other financial institution are included in the cash flow.

Introduction to the Cash Flow Statement

The Cash Flow Statement comes into existence to reflect the impact of the various balance sheet items on the cash flow and is categorized according to its purpose into three activity classifications: operating, investing and financing. A cash flow statement can be used to analyze whether an organization has enough cash to meet its expenses in the short term. International Financial Reporting Standard (IFRS) 7 governs the preparation of a cash flow statement.

It describes in detail the cash flows generated by a company's operating, investing and financing activities. This statement was approved by the Financial Accounting Standards Board (FASB) in 1987 and came into effect, and is therefore sometimes referred to as FASB 95. This report shows how the balance sheet and income statement affect cash and cash equivalents, as well as analyzing them in terms of a company's operations, investments, and financing.

The primary role of the statement of cash flows is to determine a company's short-term viability, especially its ability to pay its bills. It is a statement that reflects the dynamic position of a company's cash inflows and cash outflows over a period of time. Its components are consistent with the balance sheet and income statement. Through the cash flow statement, can reflect the operating activities, investment activities and financing activities on the impact of cash inflows and outflows, for the evaluation of the enterprise's realized profits, financial position and financial management, than the traditional income statement to provide a better basis.