Accounting Week 4 Discussion Questions
#2
Your friend comments, I just ignore the income statement when Im making an investment decision. All I care about is the cash, so that the company can pay me dividends. The balance sheet tells me about the cash the companys got; the cash flow statement tells me about its changes in cash. Who cares about the income statement? Its just a bunch of inaccurate stuff loaded with estimates. Do you agree with your friends remarks about the income statement and its lack of importance? Explain why or why not.