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