When I consider the three major accounting statements - profit and loss, cash-flows and balance sheet.. there does appear to be some missing information about the change in liability throughout a given period - is there a standard way of talking about this? Would such a statement have any utility in business decisions?
2
-
Change in liabilities is a portion of cash-flows. An increase in liability is an increase in cash flow, and a decrease in liability is a decrease in cash flow. The balance sheet also has the liabilities laid out. Balance sheets can be compared period to period to see the changes.– LuckFeb 10, 2020 at 17:05
-
Liability transactions do not necessarily have cash flow implications - such as transactions between liabilities themselves or ones that involve equity changes. Regarding comparing balance sheets between periods... true that helps... but I’m looking for a way to structure the second level analysis of the delta between periods in in similar fashion to what cash statements do.– Adam TerreyFeb 12, 2020 at 15:48
Add a comment
|