Which financial statement provides information about cash inflow and outflow?

The statement of cash flows is the financial statement specifically designed to provide insight into cash inflows and outflows for a given period. It breaks down the cash generated and used in operating, investing, and financing activities, allowing users to see where money is coming from and where it is going. This is essential for assessing a company's liquidity, its ability to cover short-term obligations, and its financial health over time.

In contrast, the income statement focuses on revenues and expenses, reflecting the profit or loss over a period but does not detail cash transactions. The balance sheet shows a snapshot of a company’s assets, liabilities, and equity at a specific point in time, lacking any cash flow information. The equity statement, meanwhile, tracks changes in equity throughout a period, but again does not address cash movements. Therefore, the statement of cash flows stands out as the key document offering a comprehensive view of cash management within the organization.