What is an income statement, and what information does it provide?
Why is earnings per share called “the bottom line”?
Differentiate between amortization and depreciation.
What are EBIT, operating income, and EBITDA?
Which is like a snapshot of the firm’s operations—the balance sheet
or the income statement—and which is more like a movie? Explain.
How do we estimate net cash flow, and how does it differ from
accounting profit?
In accounting, the emphasis is on net income. In finance, the primary emphasis is on cash flow. Why is this so?
