The Financial Statements definitions Flashcards
The Financial Statements definitions
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Balance Sheet Snapshot showing assets, liabilities, and equity at a specific date, illustrating the fundamental accounting equation. Income Statement Report detailing revenues and expenses over a period, culminating in net income as the bottom line. Statement of Cash Flows Summary of cash inflows and outflows from operating, investing, and financing activities over a period. Statement of Stockholders' Equity Record of changes in equity accounts, including retained earnings and dividends, across a period. Assets Resources owned by a company, such as cash, inventory, and equipment, expected to provide future benefits. Liabilities Obligations to pay debts or provide services to others, including payables and accrued expenses. Equity Residual interest in company assets after liabilities, representing owners' claims. Revenue Income generated from normal business operations, such as sales or services provided. Expenses Costs incurred in generating revenue, including payroll, rent, and utilities. Net Income Resulting profit or loss after subtracting all expenses from total revenues for a period. Retained Earnings Cumulative net income kept in the business after dividends are distributed to shareholders. Dividends Distributions of company profits to shareholders, reducing retained earnings but not classified as expenses. Accounts Receivable Amounts owed to a company by customers for goods or services delivered but not yet paid for. Accounts Payable Amounts a company owes to suppliers or vendors for goods or services received but not yet paid. Common Stock Equity account representing ownership shares issued to investors, reflecting their stake in the company.
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