Financial Due Diligence

The income statement of a business seems to be the most heavily relied upon tool to justify actionable business decisions. We must not forget however that it is not an island in and of itself. While a healthy income statement may look good, it is paramount to be reviewing the balance sheet as this depicts the company's health at a specific period of time through its total assets and liabilities. Of course you cannot forget about the statement of cash flows as well which will show you where the company is allocating its capital whether that be investing, operating, or financing activities. Don't make a bad decision born out of haste and excitement when the financial data being presented looks superb, it often isn't. hashtag#knowledge hashtag#knowledgeispower hashtag#accounting hashtag#accountingstrategies hashtag#investmentstrategy hashtag#investing hashtag#wealthmanagement