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How about a big cash out flow from investment with a normal cash in flow from operation? The company's cash flow statement will be very different  from those of years before. At this time, I believe you will not say the company is not good because it has a negative cash flow. Three statements show us the different aspects. Income statement shows the history, cash flow statement shows the present, while balance sheet shows the future. If you are a short-term or momentum investor, cash flow statement is enough, perhaps.

不是很看得明白，今晚再看一次试下。。。。

2# maiwenzhen 上市公司的利润可以吸引到投资者的资金，一般上市公司的假账多是做在利润额上面，而一般公司的假账多是在应交税费-应交增值税-进项税额的会计科目下。

这篇文章对我来说有点难了，花费了快一个小时才理解消化掉，继续学习，come on!

Though I am not interested in accountancy, the  essay above is still worthy of reading,especially for who buy stock.

71，71
Good article !
A profit could be made by shorting the high accrual stocks and buying the low accrual ones .
To find the best candidates , look for companies as that not only rack up extreme positive or negative accruals , but also had earnings surprises going the other way .

so professional .

balance sheet show the future?  I think the big three of the fin statement all release the history from different view. M&L and cashflow have a strongly connection which impact or form the Balance sheet.

文章很不错，支持一下！不过自己对这方面的英文了解不多，需要学习一下！

yup , this a professional artical about coperate financial issues . the key word is accruals. according to this artical , we can draw the following conclusions : (1)the accruals is a scret weapon used by company to gloss over the financial statements . (2)high-accrual firms tend to turn in worse stock market returns  , (3)arbitrage can be achieved in high and low accruals between accruals .as a non-financial and accounting majors student , whereas i can understand the surface phenomena ，i still can not comprehend the real  intrinsic link between corporate profits and accruals., why  we can profits  between high and low accruals between accruals , how  the arbitrage is maded .