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Accounting is the language of business. If you want to pick individual stocks you must understand the three financial statements and how they relate to each other. In this video were going to give you a basic accounting lecture for how the income statement cash flow statement and balance sheet are all correlated my name is brian feraldi my name is brian stoffel thanks to quartr for sponsoring todays video brian lets start with a quick overview of what the three financial statements are what is an income statement the main point of an income statement is to show whether or not a company has a profit or a loss and that covers a certain period of time whether it be one quarter of a year or a full year importantly an income statement also uses accrual accounting which accounts for things like non-cash charges and it allows you to realize revenue over a period of time instead of all at once a cash flow statement is similar to the income statement in which it
