Question
Now that you've seen all three primary financial statements - the income statement, the balance sheet, and the statement of cash flows, hopefully, you can
Now that you've seen all three primary financial statements - the income statement, the balance sheet, and the statement of cash flows, hopefully, you can see how they fit together to provide useful information. The balance sheet and income statement focus on accrual accounting, while the statement of cash flows provides information concerning the underlying cash transactions. Given all three, we should have a fairly thorough picture of a business' operating, investing, and financing activities - whether on a cash basis or an accrual basis.
Any preferences as to which might be more useful in making certain decisions?
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