Financial Statements flashcards are a helpful study tool that present key information about financial statements in a concise and organized format.
Financial statements are documents that provide information about a company’s financial performance and position. They include the income statement, balance sheet, and cash flow statement. Financial statements help investors, creditors, and other stakeholders assess a company’s profitability, solvency, and liquidity.
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quick facts
- Financial statements are documents that show a company’s financial health, including its income, expenses, assets, and liabilities.
- Balance sheets are a type of financial statement that shows a company’s assets, liabilities, and equity at a specific point in time.
- Income statements show a company’s revenues and expenses over a period of time, usually a year.
- Cash flow statements show how much cash a company is generating and how it is being used.
- Financial statements are important for investors, creditors, and managers to understand a company’s performance and make informed decisions.
card list
| Front | Back |
|---|---|
| Income statement | A financial statement that shows a company’s revenue and expenses over a specific period of time. |
| Balance sheet | A balance sheet shows a company’s assets, liabilities, and equity at a specific point in time. |
| Cash flow statement | A cash flow statement shows how money comes in and goes out of a business. |
| Statement of retained earnings | A statement that shows how a company’s profits were used or saved. |
| Revenue | Money earned by a business from selling goods or services. |
| Expenses | Expenses: Money spent on goods and services. |
| Assets | Assets are things that a person or company owns that have value. |
| Liabilities | Liabilities are debts or obligations that a company owes to others. |
| Equity | Equity is fairness or justice in how resources or opportunities are distributed. |
| Net income | Net income is the profit a company makes after subtracting expenses from revenue. |
| Gross profit | Gross profit: The money a company makes after subtracting the cost of goods sold. |
| Operating income | Operating income is the profit a company makes from its regular business activities. |
| Earnings per share | Earnings per share: The amount of a company’s profit that is allocated to each outstanding share of common stock. |
| Return on investment | Return on investment is a measure of how much profit or benefit is gained from an investment compared to the cost of the investment. |
| Depreciation | Depreciation: The decrease in value of an asset over time. |
| Amortization | Amortization: Paying off a debt over time in regular installments. |
| Interest expense | Interest expense is the cost of borrowing money. |
| Tax expense | Tax expense is the amount of money a company pays in taxes. |
| Current assets | Current assets are the things a company owns that can be turned into cash within a year. |
| Current liabilities | Current liabilities are debts or obligations that need to be paid within a year. |