what are the major difference between the income statement and the statement of cash flows
What is the difference between cash flow statement and an income statement? 1. Cashflow statement shows only the cash inflows and outflows fromoperating , investing and financing activities while incomestatement shows the income and expenses from oper â¦ ations forspecific financial year whether those cash for those income orexpenses actually received or paid or not.
An income statement is used to determine the financial performance of a company, specifically how much revenue it made, how many expenses it paid, and the resulting profit or loss from the revenue and expenses. The cash flow statement is linked to the income statement by net profit or net burn. The profit or burn on the income statement then is used to calculate cash flow from operations. This is referred to as the indirect method.