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Fundas: The Important Connections between Financial Statements (Part 1)


In two part series on Fundas this time we look at how the financial statements (Income/P&L, Balance Sheet and Cash flows) are connected.

Our aim is to help you connect the dots when analyzing financial statements of companies. For instance take the case of revenues, when revenues are recorded they can be on cash or credit. If the company receives cash for its sales, the cash account on the asset side increases, if it were on credit then the account . . .

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