1.Companies are not allowed to report profit on transactions relating to their own stock. That is, they dont report income when stock is sold, nor do they report an expense when dividends are paid to shareholders. Why is this the case?

2. What is the usefulness of the statement of cash flow? Do the balance sheet and income statement provide sufficient cash flow information?

3. What kinds of activities are reported in each of the operating, investing and financing sections of the statement of cash flows? How is this information useful?

4. DO EARNINGS LIE? This was a quote made on CNBC a several months ago?