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financial statements

Why are the dates on financial statements important? How do the primary financial statements (income statement, balance sheet, and cash flow) tie together? What managerial assessments can you make about a company that has a profit and a negative cash flow in the same accounting period?

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Why are the dates on financial statements important?
Dates are extremely important for financial statements as the main purpose of financial statements is to reflect the performance of an organization for a certain period and how the assets and liabilities are positioned at the end of a particular period. In the absence of dates, financial statements will not be of any use and its users will not be able to interpret it in correct manner.

How do the primary financial statements (income statement, balance sheet, and cash flow) tie together?

The income statement shows the profit/loss made by company during the financial year. It displays all the revenues earned by the company along with total costs incurred by the company for earning these revenues and thus, the ...

Solution Summary

Why are the dates on financial statements important? How do the primary financial statements (income statement, balance sheet, and cash flow) tie together? What managerial assessments can you make about a company that has a profit and a negative cash flow in the same accounting period?

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