Introduction of the financial statements
Getting to Know the P&L Statement: Introduction of the financial statements
The income statement, which is another name for the profit and loss (P&L) statement, is a financial document that lists a company's income, costs, and gains (or losses) for a certain time period. It gives useful information about how well a company can make money from its main activities.
A common misunderstanding among market players is that they think the fundamental analyst needs to know a lot about how to make financial statements. Even though knowing this is helpful, it's not important. To be a basic analyst, you need to be someone who uses financial statements, not someone who makes them.
When a business shows how well it's doing, it usually shows three main cash statements.
- The Profit and Loss statement
- The Balance Sheet
- The Cash flow statement
|
Table of Contents: Getting to Know the P&L Statement 1. Introduction of the financial statements 2. The Profit and Loss statement |
Post Comment