Cash flow is the business's ability to pay for things and is often referred to as the lifeblood of a company, because if it used well it can generate more cash. Cash flow can be measured on the balance sheet of a company by looking at the relationship between current assets and current liabilities. As a rule a business with considerably more current assets than current liabilities will have better cash flow.

So what does a balance sheet show?

Typically it would contain things a business actually owns such as equipment, cash and buildings