Accounts receivable (AR) have a direct link to revenues on the income statement. Companies that use accrual accounting can book ... by reporting a profit of $1.38 billion rather than a net loss ...

The accrual basis of accounting generally is preferred for the income statement and ... The cash-flow statement is divided into four categories: 1. Net cash flow from operating activities.

How LIFO and FIFO accounting methods impact a ... the COGS (on the income statement) is $1 per loaf because that was the cost of each of the first loaves in inventory. The $1.25 loaves would ...