Financial Statements

Balance Sheet

A financial statement that reports assets, liabilities, and owner's equity at a specific point in time.

Balance Sheet Equation

Assets = Liabilities + Stockholders' Equity

Assets

Economic resources (things of value) owned by a firm. Designed to increase future benefits like cash flow; not all future benefits are recorded as assets

Statement of Shareholders' Equity

Reports changes in shareholders' equity for the period

Income Statement

Reports how much money was made and the entity's performance for the period

Statement of cash flows

explains how the company's cash changed from the beginning of the accounting period to the end

Dividends

payments of cash from a corporation to its stockholders

Liabilities

what a company owes probable future sacrifices of economic benefits providing services to other entities in the future as a result of past transactions or events

Stockholders' Equity

what is left for owners money invested in the firm by its owners either directly or indirectly assets - liabilities