Accounting

The   cash flow statement   is the name commonly used by practicing accountants for the   statement of cash flows   or   SCF . We will use these names interchangeably throughout our explanation, practice quiz, and other materials. The cash flow statement is required for a complete set of financial statements. The SCF reports the cash inflows and cash outflows that occurred during the same time interval as the income statement. The time interval (period of time) covered in the SCF is shown in its heading. Two examples include "Year ended December 31, 2020" and "Three months ended September 30, 2020". The amounts on the SCF provide the reasons for the  change  in a company's  cash and cash equivalents  during the period covered. For simplicity, we will assume that the company does not have cash equivalents. Therefore, our SCF will explain the change in the company's cash from the beginning of the year to the end of the year (or the beginning of the quarter to