Is net income of a year is doubtful for company
Is the net income of a year money the company made that given year or is this a number whose importance is quite doubtful?
Expert
The net income of a year is not money which accumulates in the safe. Thus, it is not “money” the company earned. Conversely, it is one of the possible numbers (along with the flexibility which accountancy gives) a company might have illustrated. Fernández (2004a and 2004b) states that, usually, cash flow is more helpful than net income: reported net income can be presented in some ways (this is just an opinion) whereas equity cash flow or free cash flow is a truth: a unique number. There is a financial maxim that, although this is not completely true, might be convenient to keep in mind: “net income is only an opinion, whereas cash flow is a fact.”
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Stock Market: To trade company shares (or stock) and derivatives, a stock market or equity market is public entity where these shares and derivatives are sold at agreed price. These are to be listed on a stock exchange in order to trade publicly.
Stock exchanges: A stock exchange provides services useful for trading, issue and redemption of shares and other securities for traders and brokers. They will also provide facility for payment of income and dividends for listed securities. Securities
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