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Basic accounting: Which financial statement will tell you how profitable a company is?

Which Financial statement will tell you how profitable a company is? A) Income Statement B) Cash Flow Statement. C)Balance Sheet. D) All of the above

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تم إضافة السؤال من قبل Siraj vannathamkandy , Senior Accountant , Gulf Business Center
تاريخ النشر: 2013/08/26

all of the above but cash flow statement is at  the first place: a company with has a good income and a bad cash flow management  can easily bankrupt.

hanan galal
من قبل hanan galal , محاسب مالي , محميه الشيخ عبد الله

income statement showes the profitable of the company

osama abu shrieha
من قبل osama abu shrieha , Regional SHEQ Manager , Almajdouie Logistics LLC

A) Income Statement

Farhan uddin Khilji
من قبل Farhan uddin Khilji , Head of Internal Audit , ABV Rock Group Co. Ltd.

Income statement is the only statement which shows 'profitability' for a given period of time.
A company might be rich in cash flows but that might have come from capital of owners and for use on purchase of assets and payments of expenses.
Similarly balance sheet may show huge volume of assets but all those might be in an idle state.

Income Statement shows the profitability of the company...
but in order to reveal the true health of the the company, all of the above are used..
specifically cash flow statement and balance sheet  

Majid Aziz
من قبل Majid Aziz , Senior Accountant (Acting Head of Accounting) , Swissport Saudi Arabia Ltd Co

Income statement for a specific period...

manaf almas
من قبل manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

income statement and profit & loss account

The income statement is a picture about profitability of the company.

Cash flow statement give a picture of liquidity and how well the company turned revenue into cash at the bank, and "cash is king". 

 

Ali Ahmad
من قبل Ali Ahmad , General Manager Internal Audit , Listed Company

Income statment, for sure

Ghassan Khanfar
من قبل Ghassan Khanfar , cashier customer service desk , Walmart

 the income statement and the cash fllow

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