7 concepts
Introduction to the Balance Sheet
The balance sheet is a summary of the financial balances of a company and reflects the company's solvency and financial position.
Introduction to the Income Statement
The income statement shows revenues and expenses for a specific period.
Introduction to the Retained Earning Statement
The statement of retained earnings explains the changes in a company's retained earnings over the reporting period.
Introduction to the Statement of Cash Flows
The cash flow statement provides information on a firm's liquidity and solvency.
Relationships Between Statements
The four main financial statements provide relevant financial information for internal and external users.
Financial Statement Notes
Financial statement notes explain specific items in the financial statements.
Additional Items: Auditor and Management Reports
When an audit is performed on a company, the auditor issues a formal opinion in the form of an auditor report.