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Income statement: This is the financial statement of a company which shows all the revenues
earned and expenses incurred by the company over a period of time.
Statement of Cash Flows: This is one of the basic financial statements which shows the changes
in cash flow from operating, investing, and financing activities of a business.
Differences:
Cash flow statement records only cash items but income statement records both cash and non-
cash items like depreciation and amortization.
Cash flow statement shows the exact cash generated from the activities of the business and so it
is regarded as the statement which shows the sharp image of the company.
Cash from Operating Activities : Thes activites show the amount of cash generated from day-to-
day business operations.
Cash from Investing Activities: These activities show the amount of cash used for investing
purposes like assets, or cash received or paid from the sale of other businesses, equipment, or
other long-term assets.
Cash from Financing Activities: These activities show the amount of cash paid or received from
financing sactivites from issuing and borrowing of financial instruments and dividends paid.
Solution
Income statement: This is the financial statement of a company which shows all the revenues
earned and expenses incurred by the company over a period of time.
Statement of Cash Flows: This is one of the basic financial statements which shows the changes
in cash flow from operating, investing, and financing activities of a business.
Differences:
Cash flow statement records only cash items but income statement records both cash and non-
cash items like depreciation and amortization.
Cash flow statement shows the exact cash generated from the activities of the business and so it
is regarded as the statement which shows the sharp image of the company.
Cash from Operating Activities : Thes activites show the amount of cash generated from day-to-
day business operations.
Cash from Investing Activities: These activities show the amount of cash used for investing
purposes like assets, or cash received or paid from the sale of other businesses, equipment, or
other long-term assets.
Cash from Financing Activities: These activities show the amount of cash paid or received from
financing sactivites from issuing and borrowing of financial instruments and dividends paid.

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Income statement This is the financial statement of a company which.pdf

  • 1. Income statement: This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. Statement of Cash Flows: This is one of the basic financial statements which shows the changes in cash flow from operating, investing, and financing activities of a business. Differences: Cash flow statement records only cash items but income statement records both cash and non- cash items like depreciation and amortization. Cash flow statement shows the exact cash generated from the activities of the business and so it is regarded as the statement which shows the sharp image of the company. Cash from Operating Activities : Thes activites show the amount of cash generated from day-to- day business operations. Cash from Investing Activities: These activities show the amount of cash used for investing purposes like assets, or cash received or paid from the sale of other businesses, equipment, or other long-term assets. Cash from Financing Activities: These activities show the amount of cash paid or received from financing sactivites from issuing and borrowing of financial instruments and dividends paid. Solution Income statement: This is the financial statement of a company which shows all the revenues earned and expenses incurred by the company over a period of time. Statement of Cash Flows: This is one of the basic financial statements which shows the changes in cash flow from operating, investing, and financing activities of a business. Differences: Cash flow statement records only cash items but income statement records both cash and non- cash items like depreciation and amortization. Cash flow statement shows the exact cash generated from the activities of the business and so it is regarded as the statement which shows the sharp image of the company. Cash from Operating Activities : Thes activites show the amount of cash generated from day-to- day business operations. Cash from Investing Activities: These activities show the amount of cash used for investing purposes like assets, or cash received or paid from the sale of other businesses, equipment, or other long-term assets. Cash from Financing Activities: These activities show the amount of cash paid or received from financing sactivites from issuing and borrowing of financial instruments and dividends paid.