Accounting (AS)·Company accounts · NSSCAS 2.3.2

The statement of cash flows

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A company can make a big profit and still have no money in the bank to pay wages — this lesson explains why, and shows you how the statement of cash flows tracks where the cash really came from and went. You will learn the difference between a cash flow statement and a cash budget, then build the full NIED format step by step for a Namibian company. Preparing this statement is a classic Paper 1 structured question worth big marks.

What you'll learn in this lesson

By the end you should be able to (NSSCAS Accounting (AS) 2.3.2):

  • explain the purpose of a statement of cash flow
  • explain the difference between a statement of cash flow and cash budget
  • prepare a statement of cash flow
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The statement of cash flows · NSSCAS Accounting (AS) · namstudy