The cash flow statement is a cash basis, that is, it records the cash flow actually received and paid by the enterprise, rather than accounts receivable and payable recorded on the accrual basis.

cash basis and accrual basis are two different methods in accounting.

cash basis is a method to calculate income and expenditure according to the actual time of receipt and payment. That is, only when the payment is actually received or paid can the income or expenditure be confirmed. This method is suitable for enterprises with clear cash flow, such as retail enterprises and catering enterprises.

accrual basis is a method to calculate income and expenditure according to the occurrence time of rights and responsibilities. That is, after the delivery of goods or the completion of services, it can be confirmed that income or expenditure has occurred. This method is suitable for more complex enterprises, such as manufacturing enterprises and real estate enterprises.

generally speaking, cash basis pays more attention to cash flow, while accrual basis pays more attention to economic essence. Enterprises can choose their own accounting methods according to their own actual conditions.