What are the fundamental concepts of a cash flow statement, income statement, and a balance sheet?
What will be an ideal response?
For a cash flow statement, to have positive cash flow, a company needs to maximize its inflows, minimize its outflows, and make sure that there is less cash going out than coming in. An income statement depicts profitability. To be profitable, a company needs to have higher revenues than expenses. A balance sheet deals with assets, liabilities, and owner's equity. To have a strong balance sheet, a company needs to acquire assets without incurring excessive liabilities so that the value of the company (its owners' equity) continues to grow.
You might also like to view...
Input/Output devices are software that allows real-world users to interact with the virtual world of the information system
Indicate whether the statement is true or false
For a company to become a learning organization, management needs to ________
A) establish a commitment to change B) hire additional supervisors C) upgrade computer technology D) hire well-educated staff members