What is the difference between the income statement and the...

What is the difference between the Income Statement and the Cash Flow Statement? There is no difference. They both show cash coming in and out of the firm. The Income Statement is for a single point in time and the Cash Flow Statement covers a specific period of time The Income Statement shows accrual basis Net Income and the Cash Flow Statement shows why the cash balance on the Balance Sheet changed between two Balance Sheet dates. All of the above None of the above

Transcript

00:07 So we bring us the difference between an income statement and a cash flow statement.

00:13 So from what we know, if you look at the things that are included in income statement, they are similar to the cash flow, but not everything in the cash flow is included in the income statement.

00:24 And also not everything in the income statement is included in the cash flow statement.

00:29 So one thing you have to look at is this word which says cash.

00:34 So what you know is the cash flow statement deals with cash items, right? monetary items, a flow of cash, right? so non -manitary things like depreciation, when an asset depreciates, no money is involved.

00:51 Those things are excluded from the cash flow, right? and when an asset is bought, cash is involved.

00:58 So that event of an asset being bought is included.

01:04 The cash flow statement but it is not in the income statement because income statement is just for your income and your expenses right is just to get you to your profit or loss right so i'm going to be listing the answers that we're given and they'll be ticking what is wrong and what is right so for the first one they say that um the income statement is for a um single point in time right? that's what they say.

01:43 And they say that for a cash flow statement is for a specific period.

01:50 Now, what i know is whenever we prepare these statements, it's always over the same period.

01:56 It's income statement is at 30 december 2020.

02:00 Cash flow statement is at 30 december 2020.

02:03 So these answers are wrong...

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