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Why are dates on financial statements important? How do primary financial statements income statement, balance sheet, and cash flow tie together? What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?

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Why are dates on financial statements important? How do primary financial statements income statement, balance sheet, and cash flow tie together? What managerial assessments may you make about an organization that has a profit and negative cash flow in the same accounting period?

Compare and contrast the balance sheet treatment of a car purchased with cash and a car purchased on credit. How is equilibrium of the basic accounting equation maintained in both instances? Clarify why the methods may be treated differently.

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