Accounting / July 19, 2018 / Khloe Santiago
Bank reconciliation statements ensure payments have been processed and cash collections have been deposited into the bank. The reconciliation statement helps identify differences between the bank balance and book balance, in order to process necessary adjustments or corrections. An accountant typically processes reconciliation statements once a month.
The cash flow statement is one of the three main financial statements that show the state of a company's financial health, the other two being the balance sheet and income statement. The cash flow statement measures the cash generated or used by a company during a given period. The cash flow statement has three sections - cash flow from operating (CFO), cash flow from investing (CFI), and cash flow from financing activities (CFF). Cash flow from operating activities indicates the amount of cash that a company brings in from its regular business activities or operations. Cash flow from investing activities reflect a company's purchases and sales of capital assets.
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