When it comes to accounting, there are two main methods of determining a firm's financial health and profitability. One method is to calculate the firm's accounting profits, otherwise known as net ...

Both profit and cash flow are critical for the long-term viability of a business. Over the long run, profitable firms tend to have positive cash flow and accumulate a significant amount of cash. There ...

Learn about cash flow statements, track cash inflows and outflows, and gain insights into a company’s financial health ...

One of the toughest rites of passage investors go through is learning how to navigate financial statements. In particular, understanding the difference between accounting income and cash flow is a ...

Every business leader knows how critical revenue and profit are to a company's long-term success. But there's another factor that's equally important to an organization's day-to-day health: cash flow.

Our series on the Financial Accounting Standards Board's Conceptual Framework has focused so far on broad issues. We first explained the need to acknowledge that the goal for standard-setting is ...

The businesses that are running more smoothly aren’t necessarily earning more, they’re just seeing their numbers more clearly ...

No matter what happens with General Electric Co.'s dividend, investors will still have to grapple with the fact it is nearly impossible to tell how much of its earnings are backed by cash. Until ...

Accrual basis accounting is typically the preferred method, but cash basis accounting may work for very small businesses. Many, or all, of the products featured on this page are from our advertising ...