Uploaded September 2019 | Updated September 2026, 25 minutes ago

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Whenever the average reader of let's say a financial report comes across terms such as stocks and flows, he or she tends to assume it's time to skip a few paragraphs because, after all... "stocks and flows" is just some economics mumbo-jumbo you couldn't possibly wrap your head around... right?

Wrong.

This video explains stocks and flows in just one minute, taking you from the definition or if you will meaning of the terms to examples and, ultimately, a comparison.

To refer to examples of stocks and flows from the accounting world, the balance sheet is where you should expect to come across stocks, whereas the income statement is candidate #1 with respect to flows.

Again, this one minute example literally explains everything you need to know about stocks and flows so that next time you come across them, you actually make good use of the information that is provided rather than superficially skim past that section.

The definition/meaning of stocks and flows is easy to understand, real-life examples abound and at the end of the day, the comparison is more than straightforward... as you will be about to find out :)