Читать книгу Accounting For Dummies - John A. Tracy - Страница 44

To survive and thrive, business managers confront three financial imperatives:

 Make an adequate profit (or at least break even, for a not-for-profit entity). The income statement reports whether the business made a profit or suffered a loss for the period.

 Keep the financial condition in good shape. The balance sheet reports the financial condition of the business at the end of the period.

 Control cash flows. Management’s control over cash flows is reported in the statement of cash flows, which presents a summary of the business’s sources and uses of cash during the same period as the income statement.

This section introduces you to the statement of cash flows. (We coauthored Cash Flow For Dummies, published by Wiley, which you may want to take a peek at for more information.) Financial reporting standards require that the statement of cash flows be reported when a business reports an income statement.