Source: https://en.wikipedia.org
A Cash Flow Statement is a financial statement that shows how changes in the balance sheet and income affect cash. Cash includes cash equivalents. Essentially, the cash flow statement is concerned with the flow of cash in and out of the business. It is useful in determining the short-term viability of a company, particularly its ability to pay bills. International Accounting Standard 7 (IAS 7) is the International Accounting Standard that deals with cash flow statements.
Known as a statement of cash flows, it is an analytical tool. It breaks the analysis down into operating, investing, and financing activities.