Italy Metro Map on Simply defined, CASH FLOW is net income less noncash revenues plus depreciation and any other items charged to reserves that were not actually paid out in dollars. Thus, the statement of cash flows differs from the income statement and the balance sheet in that the latter two statements record items on an accrual basis. There are several sections of the statement of cash flows. One section reports the activities of the firm that are related to the generation of income and include income, expenses, and changes in working capital items. This section is aptly called cash flows from operating activities. Another section reports cash flows that arise from the purchase or sale of physical assets or long-term financial assets. Note that long-term financial assets are generally not as liquid as cash and are therefore not cash equivalent. Italy Metro Map 2016.
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