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

Related Terms

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aging report

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💰 Finance / Accounting

Intermediate

solvent

In finance, the blessed state of actually being able to pay your debts when they come due—a concept that feels increasingly mythical. Your assets exceed your liabilities, you can sleep at night, and creditors aren't calling. In chemistry, it's the liquid that dissolves other substances, which is coincidentally what financial insolvency does to your peace of mind.

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chart of accounts

A comprehensive listing of all accounts in an organization's general ledger, organized into categories like assets, liabilities, and expenses. It's the financial filing system that makes sense to exactly one person: whoever designed it.

💰 Finance / Accounting

Intermediate

Float

The difference between a company's book balance and actual bank balance due to checks written but not yet cleared. Temporary money that doesn't belong to you but you can use anyway.

💰 Finance / Accounting

Intermediate

VAT

Value Added Tax, the European way of making you pay incrementally for everything at each stage of production and distribution. Unlike American sales tax that hits you once at checkout, VAT is baked into the price at every step, making it simultaneously more transparent and more insidious. British tourists love explaining this to confused Americans at duty-free shops.

💰 Finance / Accounting

Intermediate

rollover

The financial practice of moving money from one investment or retirement account to another without triggering tax consequences, because the IRS is generous like that. Also describes what happens to your old web design when you hover over a button, or what vehicles do in unfortunate accidents. In tech, it's that fancy effect where images change when your cursor touches them, making websites feel interactive since 1995.

💰 Finance / Accounting

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