Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
3rd Edition
ISBN: 9780133507676
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 2, Problem 5CT
Summary Introduction

Financial Statements:

Financial statements are the accounting reports of any organization that are prepared with a purpose to disclose its past performance and also the assets and liabilities of the company along with the finances. These statements are prepared either on an annual basis or on a quarterly basis.

Income Statement

The income statement is one of the financial statements which show the financial health of a company. It is also known as the profit and loss statement or the P/L Statement. It represents the financial performance of a company for a particular time period. The income statement exhibits all the revenues and expenses and helps in calculating the net income of the company.

Cash Flow Statement

The cash flow statement is one of the financial statements of a company. It shows the cash which flows in and out of a business for a particular period of time. It is based on the accrual basis of accounting and prepared on the quarterly basis.

To Identify:

The difference between the income statement and the cash flow statement.

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Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)

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