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.
