NCFC Accounts, before the inquests start...

Everyone needs to be aware of the differences between profit & loss, balance sheet, and cashflow statements.

Profits don't necessarily equal cash, and losses don't necessarily mean no cash.

P&L; summarises revenues earned and costs incurred during the year (not cash in and cash out... accrual concept of accounting) - a 'history book'of the year

BS; statement of assets, liabilities and capital of the business at a moment in time - a snapshot

Cashflow; an aggregate statement of cash inflows and outflows from both its operations and its investments during the period.

All three have to be read in combination to get a full picture.

Posted By: Worthing Yellow, Nov 5, 10:24:07