The Accounting Formula

  • Income Statement
  • Balance Sheet Statement
  • Statement of Cash Flows
  1. Cash Flow from Operating Activities
  2. Cash Flow from Investing Activities
  3. Cash Flow from Financing Activities
  • Operating — think cash collected from customers and other related business activities.
  • Investing — think long-term investments in fixed assets, real estate, and equipment.
  • Financing — think dividends and stockholder’s equity; cash is paid out for dividends.



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Stephen Ngao

Stephen Ngao

Aspiring entrepreneur in love with music, film, finance, and tech. Carpe diem!