When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

Accounting income is distinct from cash flows, particularly money a business has in its coffers at the end of given period such as a month or fiscal year. Various regulatory guidelines highlight these ...

Many small businesses start off strong with a solid business plan, an impressive product, sufficient funding and a growing customer base. Then, somewhere along with the way, the business stalls, ...

Our series on the Financial Accounting Standards Board's Conceptual Framework has focused so far on broad issues. We first explained the need to acknowledge that the goal for standard-setting is ...

Net income and free cash flow are related but are not the same measure. Net income represents a company's accounting profit, whereas cash flow presents whether a company's cash balance increased or ...

One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a ...

The International Accounting Standards Board has embarked on a research project to review and improve the requirements for the statement of cash flows and related matters in International Financial ...