Which document records the actual cash coming into and going out of a business?

The Cashflow Statement is a key financial document that provides a detailed account of all cash transactions within a business during a specific period. It records the actual cash inflows and outflows, allowing stakeholders to see how cash is generated and utilized.

This statement is divided into three main sections: operating activities, investing activities, and financing activities, giving a comprehensive view of how funds move in and out of the business. By presenting this information, the Cashflow Statement helps in assessing the liquidity and overall financial health of a business, making it essential for decision-making.

In contrast, a Cashflow Forecast is a projection of future cash flows based on expected income and expenses rather than actual figures. The Income Statement reflects profitability over a period by summarizing revenues and expenses but does not focus specifically on cash transactions. Meanwhile, the term "Market Oriented" does not pertain to cash flow documentation and is unrelated to financial statements. Understanding these distinctions helps clarify the role of the Cashflow Statement in financial analysis.