MANAGEMENT

Detailed explanation-1: -A cash flow statement lists cash inflows and cash outflows while the income statement lists income and expenses. A cash flow statement shows liquidity while an income statement shows profitability.

Detailed explanation-2: -Income Statement The Income (Profit and Loss) Statement, commonly referred to as the P&L statement, summarizes the revenue and expenses for a specific time period (one month, one quarter, one year, etc.) The Projected Income Statement is a snapshot of your forecasted sales, cost of sales, and expenses.

Detailed explanation-3: -The income statement, also known as a profit and loss statement, is important because it shows the overall profitability of your company for the time period in question. Information on sales revenue and expenses from both your accounting journals and the general ledger are used to prepare the income statement.

Detailed explanation-4: -The income statement shows a company’s expense, income, gains, and losses, which can be put into a mathematical equation to arrive at the net profit or loss for that time period. This information helps you make timely decisions to make sure that your business is on a good financial footing.