Provide a half page response to each of the following questions. Cite two sources (APA) for each question and indicate for which question the source was used. No Title Page reqired
How does the statement of cash flows differ from the income statement? What do the operating activities, investing activities and financing activities tell us about cash events?
What is the cash flow identity? Explain its components.
Statement of Cash Flow
How Does The Statement of Cash Flows Differ From The Income Statement?
The statement of Cash Flow and Income Statement are crucial necessaries piece of the accounting financial statements as they serves as useful tool to all the relevant financial users such as the investors and creditors. As much as the two appears to serve the same accounting purpose, both have distinctive features that makes the two major accounting statements difference. Therefore, below are the differences between an income statement and cash flow statement.
First, an income statement refers an accounting report that focuses on revealing a company’s profit and losses, revenues and other gains in a particular financial year