Finance Brain
Courses
Home
Sign in
← Reading Financial Statements as an Investor
1 / 4
Question
What is the key difference between a company's income statement and its cash flow statement?
1
The income statement covers a calendar year; the cash flow statement covers a rolling twelve-month period
2
The income statement reflects accounting profit, which includes non-cash items and accounting judgements; the cash flow statement shows actual cash movements in and out of the business
3
The income statement shows long-term assets; the cash flow statement shows short-term liquidity
4
The income statement is audited; the cash flow statement is prepared on a management estimate basis
Press 1–4 to pick an answer
Finance Brain