Definition The Cash Flow Statement (CFS) is a financial statement that shows the inflow and outflow of cash during a specific period. It tracks how cash is generated and used in a business through its operational, investing and financing activities. Unlike the Income Statement, which focuses on profitability, the Cash Flow Statement emphasizes the actual cash position of a company, providing stakeholders with insight into its liquidity and financial health.
Definition An audit trail, in the context of financial reports, refers to the chronological record of all the transactions, processes and financial data that provide documentary evidence of the steps taken in a financial reporting process. It includes all the documentation, records and logs that allow an auditor to trace the financial data back to its origin, ensuring accuracy, transparency and compliance with regulatory standards. Audit trails are essential for both internal controls and external audits, providing a way to verify the validity of financial information.
Definition An income statement, also known as a profit and loss statement (P&L), is a financial report that summarizes a company’s revenues, expenses, and profits or losses over a specific period, typically a quarter or a year. It provides insight into the company’s operational efficiency, profitability, and overall financial performance. The income statement is one of the three main financial statements, alongside the balance sheet and cash flow statement, and is crucial for investors, analysts, and management to assess the financial health of a business.
Definition Financial data encompasses quantitative information related to financial transactions, market activities and the financial status of entities. It serves as the backbone for financial analysis, investment decision-making and regulatory compliance. This data includes, but is not limited to, balance sheets, income statements, cash flow statements and market price information. Accurate and timely financial data is crucial for investors, analysts and regulators to evaluate a company’s performance, assess market conditions and make informed decisions.