Activity Instruction

Compare and contrast the balance sheet, income statement, and cash flow statement. (Note that to compare and contrast these three tools, you will need to define each of them). Discuss the following:

• What is the most important segment of a cash flow statement? Why?
• Can the cash flow statement be manipulated? If so, how? If not, why not?
• Are most investors sophisticated enough to interpret a cash flow statement? Should they be?

Post a substantive initial post by Thursday. Support your post as appropriate with the theories presented in this week's required reading.

Response Guidelines