Tutor profile: Cami C.

Explain the yield curve and its significance.

The yield curve is a graphed line that represents the relationship between short and long-term interest rates, specifically in government securities. The yield curve's primary importance is as a predictor of recessions.

Explain the cash flow statement, including what categories it consists of and what each category shows the reader.

The cash flow statement shows the cash inflow and outflow from the company. The cash flow statement consists of three categories: 1) cash flow from operations; 2) cash flow from investing; and 3) cash flow from financing. Cash flow from operations consists of the cash inflows and outflows generated by the company's core business. Cash flow from investing consists of the cash inflow and outflows from a company in the form of investments (e.g. purchasing or selling property, plant and equipment (PP&E). Cash flow from financing consists of cash inflows and outflows generated from all financing activities, such as issuance of bonds or early retirement of debt.

What is the difference between accounts receivable and accounts payable?

Accounts receivable is the amount that is owed to a company from its customers, whereas accounts payable is the amount that a company owes to its suppliers.