The document discusses cash flow statements, which assess the sources and uses of cash over a period of time. Cash flow statements categorize cash flows into operating, investing, and financing activities. They help companies understand their liquidity and solvency positions by showing where cash is generated and spent. The preparation of cash flow statements involves calculating the change in cash balance between periods based on internal and external cash sources and uses. Examples of cash flows from investing activities include payments for assets and shares, and receipts from asset sales. Financing cash flows relate to equity and debt issuances and repayments.