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 ...

Savvy investors look at a company’s financial health before buying its stock. Some investors monitor a company’s free cash flow and review its cash flow statements to gauge how well it manages its ...

Expenses are an unavoidable cost of doing -- and staying in -- business. When a business incurs an expense, there are two accounting methods it may use to record the expense to its books -- the cash ...

FASB ISSUED CONCEPTS STATEMENT NO. 7 TO HELP CPAs who use present value and cash flow information as the basis for accounting measurements. Using Cash Flow Information and Present Value in Accounting ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, ...

The Cash Flow Statement is a secret weapon for analysts and investors, a way to see through the accounting tricks companies ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Michael Boyle is an experienced financial ...

Cash flow is, understandably, one of a company’s most significant concerns. To stay on top of this vital financial metric, business owners rely on accurate, consistent cash flow statements. These ...

The Securities and Exchange Commission's chief accountant cautioned auditors and public companies about the statement of cash flows after spotting problems that could lead to a financial restatement. ...

Effective cash flow management is critical to running a successful business. However, many companies overlook this fundamental principle, focusing primarily on revenue under the assumption that ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...