cash flow statement is a financial statement that provides aggregate data regarding all cash inflows that a company receives from its ongoing operations and external investment sources. It also includes all cash outflows that pay for business activities and investments during a given period.A company’s financial statements offer investors and analysts a portrait of all the transactions that go through the business, where every transaction contributes to its success. The cash flow statement is believed to be the most intuitive of all the financial statements because it follows the cash made by the business in three main ways: through operations, investment, and financing. The sum of these three segments is called net cash flow.These three different sections of the cash flow statement can help investors determine the value of a company’s stock or the company as a whole.Adjustments and Closing Entries:Adjusting Entries:Adjusting entries are made at the end of an accounting period (usually at the end of the month, quarter, or year) to update account balances before financial statements are prepared. The goal is to ensure that revenues and expenses are recognized in the period in which they are earned or incurred, in accordance with the accrual basis of accounting.Adjusting entries can be used to record:Accrued revenues: Revenue that has been earned but not yet recorded because cash has not been received.Accrued expenses: Expenses that have been incurred but not yet recorded because cash has not been paid.Prepaid expenses: Expenses that were paid in advance and have been used up in the current period.Closing entries are made at the end of the accounting period after financial statements have been prepared. These entries serve to reset the balances of temporary accounts (i.e., revenue, expense, and dividend accounts) to zero in preparation for the new accounting period. The net income or loss for the period and any dividends paid are transferred into retained earnings.In summary, adjusting entries are made before preparing financial statements and serve to update account balances in line with the accrual basis of accounting. Closing entries, on the other hand, are made after the financial statements are prepared and serve to reset the balances of temporary accounts to zero, ready for the next accounting period.