Accounting › Section O · Cash flows and statement analysis › Topic O.1
Operating, investing, and financing activities
A profitable company can still run out of cash and fail. The statement of cash flows shows where a business's cash came from and where it went, sorted into three activities that tell very different stories about its health.
In this topic
- Profit is not cash
- What the statement explains
- Operating activities
- Investing activities
- Financing activities
- US GAAP rules and IFRS choices
- Noncash investing and financing activities
- Worked example: classifying transactions
- Worked example: from activities to ending cash
- Common mistakes to avoid
- Key takeaways
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