SCF (Statement of Cash Flows)

Definition

The financial statement that shows the truth about whether a company actually generates cash, making most P&Ls look like fiction.

Example Usage

Our P&L is positive but our cash flow statement shows we're burning through our reserves.

Origin

Required financial statement under GAAP since 1987

Fun Fact

Many fraudulent companies have great P&Ls but terrible cash flow, which is why sophisticated investors ignore accrual earnings

Source: Fundamental financial statement in all accounting frameworks

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