Complementing the balance sheet and income statement, the cash flow statement, a mandatory part of a company's financial reports since 1987, records the amounts of cash and cash equivalents entering ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Understanding how the income statement affects the balance sheet is not that difficult. The two concepts fit together like pieces of a dynamic puzzle. In this case, the puzzle is the financial ...

The ending balance of a cash-flow statement will always equal the cash amount shown on the company's balance sheet. Cash flow is, by definition, the change in a company's cash from one period to the ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

If there is any unfortunate thing about investing, it's that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired.

If there is any unfortunate thing about investing, it's that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired.