The profit or loss amount from the income statement is also shown on the organization's cash flow statement.

Question

Quizplus · Accepted Answer

The income statement shows the company's revenues and expenses, resulting in net income or loss, while the cash flow statement reflects the company's cash inflows and outflows from operating, investing, and financing activities. The profit or loss from the income statement affects the cash flow from operating activities, but it is adjusted for non-cash transactions and changes in working capital to reflect actual cash flow.

The Profit or Loss Amount from the Income Statement Is