Statement of Cash Flows Explained Clearly | Operating, Investing, and Financing Activities

Learn how the Statement of Cash Flows works in simple terms. In this lesson, Professor Lamptey explains why profit is not always the same as cash and how the Statement of Cash Flows shows where cash came from and where cash went during the period. You will learn the three major sections of the Statement of Cash Flows: operating activities, investing activities, and financing activities. You will also see how beginning cash, net change in cash, and ending cash connect to the Balance Sheet. The Statement of Cash Flows answers one important question: What happened to cash during the period? Subscribe to Accounting with Professor Lamptey for simple, clear, and accurate accounting lessons. Chapters: 00:00 Introduction 00:45 Why Profit Is Not Always Cash 01:40 What Is the Statement of Cash Flows? 02:35 Why the Statement of Cash Flows Matters 03:30 Correct Heading and Reporting Period 04:20 Cash vs. Net Income 05:20 Timing Differences and Non-Cash Expenses 06:30 The Three Sections of Cash Flows 07:15 Operating Activities Explained 08:15 Investing Activities Explained 09:10 Financing Activities Explained 10:00 Statement of Cash Flows Example 11:15 Ending Cash and the Balance Sheet Connection 12:00 Common Mistakes 12:45 Final Summary #Accounting #StatementOfCashFlows #CashFlowStatement #FinancialStatements #AccountingBasics #ProfitVsCash #OperatingActivities #InvestingActivities #FinancingActivities #CPAExam