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In this video, we will be discussing the Cash Flow Statement for beginners, which is a financial statement that summarizes a business's cash inflows and outflows over a period of time. It is important to understand the difference between the cash method and the accrual method of accounting. With the cash method, revenue is recognized when cash is received and expenses are recorded when cash is paid out. On the other hand, the accrual method recognizes revenue as it is earned and expenses as they are incurred. This distinction impacts the financial statements generated, with the income statement being the primary focus for cash accounting.
