Income Statements and Cash Flow Statements

Income Statements and Cash Flow Statements

Here are some disadvantages of income statements and cash flow statements in financial analysis. If there is any unfortunate thing about investing, it’s that no investment can be made with perfect information. Not only are markets forward-looking, but accounting leaves a lot to be desired. Accounting is a science, but interpreting it is very much art. Here are a few disadvantages of income statements and cash flow statements. Disadvantages of the income statement In isolation, the income statement doesn’t tell us all that much about a company. There are a…