Income Statement
Amount earned from selling goods and/or providing services
Revenues
What the abbreviations CS and RE represent
Common Stock and Retained Earnings
Resources owned by the company
Assets
Involving revenue and expense activities
Operating Activities
What the abbreviations A, L, and SE represent
Assets, Liabilities, and Stockholders' Equity
Cost of operations incurred to generate revenue
Expenses
The Common Stock equation
BB Common Stock + New Issuances = EB Common Stock
Amounts owed to creditors; creditor claims
Liabilities
Buying or selling long-term assets, like property and equipment
Investing Activities
Represents investments made by stockholders (external source)
Common Stock
What the abbreviations R, E, and NI represent
Revenue, Expenses, and Net Income
The Retained Earnings equation
BB Retained Earnings + Net Income - Dividends = EB Retained Earnings
Owners' claims to the company's assets
Stockholders' Equity
Transactions with lenders and stockholders
Financing Activities
Accumulated net income minus dividends distributed to stockholders (internal source)
Retained Earnings
The Income Statement equation
Revenue - Expenses = Net Income (Net Loss)
The Statement of Stockholders' Equity Equation
Total SE = EB Retained Earnings + EB Common Stock
The Balance Sheet equation
Assets (resources) = Liabilities + Stockholders' Equity (claims to resources)
The Statement of Cash Flows equation
Change in Cash + Beginning Cash = Ending Cash
The three categories of activities in the Statement of Cash Flows
Operating, Investing, and Financing
What the Income Statement reports
The company's profitability and operational efficiency over a period of time
What the Statement of Stockholders' Equity summarizes
Changes in stockholders' equity over a period of time
What the Balance Sheet presents
The company's financial position at a point in time
What the Statement of Cash Flows tracks
Cash inflows and outflows over a period
The sequence financial statements should be in
Income Statement, Statement of Stockholders' Equity, Balance Sheet, and Statement of Cash Flows