The income statement, sometimes ref

The income statement, sometimes referred to as the profit and loss statement (P&L), provides information about the financial results of operations during the reporting period. The report informs readers how much revenue was produced from various sources, how much it cost to produce the goods or services, what the overhead expenses were, and what the profit or loss for the period was.The statement of cash flows provides important facts about the money that flowed through the business during the accounting period: where it came from and what it was used for. This statement shows how much cash was a result of sales, how much was spent to produce the products that were sold, how much money was borrowed or came in as a result of new capital investments, and how much was invested in assets.HR professionals need to understand some basic accounting terminology and be able to read and understand financial reports in order to be effective strategic partners in their organizations. Table 2.7 provides definitions for some common accounting terms.