The 'bottom line' in the profit or loss statement is profit. The 'bottom line' in the statement of cash flows is:

Question

Quizplus · Accepted Answer

The 'bottom line' in the statement of cash flows is the net increase or decrease in the cash balance over the period, which represents the amount of cash generated or used by the company during the period. This is typically the most important figure for investors and analysts, as it shows how much cash the company is actually generating or using, regardless of any accounting adjustments or non-cash items. Cash flow from operations and net cash balances at the beginning or end of the year are also important figures, but they are not the 'bottom line' figure in the statement of cash flows.

The 'Bottom Line' in the Profit or Loss Statement Is