Financial Statements
The financial statement that provides the results of operations over a period of time.
What is the income statement?
A common set of accounting principles that companies must follow when they compiled financial statements in the US.
What is GAAP?
Resources owned by the business that are expected to that are expected to provide future economic benefits.
What are assets?
People who are hired by the board to express an opinion about whether the statements are prepared in accordance with GAAP.
Who are auditors?
The financial statement that provides all resources and obligations at a period of time.
What is the balance sheet?
A system for recording information about business transactions to provide summary statements of a company’s financial position.
What is accounting?
Claims on assets by creditors or obligations to make future payments.
What are liabilities?
The people responsible for preparing financial statements.
Who is management?
One of the required financial statements, not the balance sheet, income statement, or statement of stockholders equity.
What is the statement of cash flows?
An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.
What is accrual accounting?
All of the net income or accounting income that’s been created over the life of the company, minus any dividends that have been paid out.
What is retained earnings?
Bankers, investors, and owners are examples of these.
Who are the users of financial statements?