Reference no: EM132527835

Question - There are 4 Basic Financial Statements: Income Statement, Balance Sheet, Statement of Changes in Stockholders/Owner's Equity, and Statement of Cash Flows. The Statement of Cash Flows typically receives the least amount of attention in Accounting textbooks. Further, the news typically focuses on 'Net Income' and 'Quarterly Earnings.' Also, reference is also made to items on the Balance Sheet. For example, technology companies can be a risky investment because despite their high earnings, there may be very little in the way of tangible assets supporting their business. The Statement of Changes in Stockholder's Equity really reports only the change in 'book value' of the company. A company may have total Stockholder's Equity of $50 million and 500,000 shares outstanding. The book value of the share is $100 but the stock may be trading in the market anywhere from $85 to $120 per share. Is it wrong to report the stock at book value?

What can people learn about stewardship from the Statement of Cash Flows? What insights does it provide that people can't learn from the other 3 Financial Statements?

What are your thoughts on this from a Christian perspective?