1. Understand the purpose and use of the basic financial statements:
(a) Income Statement, or Profit & Loss
(b) Cash Flow Statement
(c) Balance Sheet
2. Understand the basic elements of an Income Statement and Cash Flow Statement
3. Understand how to create a Cash Flow Statement
A quick introduction to the purpose and use of the three basic financial statements.
A brief introduction to the Income Statement.
Here we analyze the Statement of Cash Flows using the Indirect method. We will cover the Direct method in a future learning packet.
Was there a video on the balance sheet? The others were very helpful.
Robert, based on the industry and operational model of the company, there will be differences in the items shown on the P&L and Cash Flow statements. However, there are also standards for methodology, consistency and comprehensiveness that all fall under the heading of generally accepted accounting principles, or GAAP. Here is a great resource on GAAP standards if you want a detailed reference: http://www.fasab.gov/accounting-standards/authoritative-source-of-gaap/
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