Financial Statements & Reporting
The terms behind the reports finance produces: balance sheets, income statements, and everything that goes into telling the business what happened, clearly.
26 terms
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01
Reporting Standards & Bodies
Accounting Change
A modification in accounting principles, estimates, or reporting entity that impacts financial reporting.
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02
Forecasting & Projections
Annual Report
A comprehensive document published yearly by public companies that provides a detailed overview of their financial condition, operational performance, and future prospects.
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03
Core Statements
Balance Sheet
A fundamental financial statement that presents a snapshot of an organization's financial position at a specific point in time, displaying assets, liabilities, and shareholders' equity.
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04
Core Statements
Cash Flows
The movement of money into and out of a business, tracked through operating, investing, and financing activities.
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05
Core Statements
Combined Financial Statement
A financial report that presents the aggregated financial position and results of two or more affiliated organizations or divisions as if they were a single entity.
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06
Core Statements
Comparative Financial Statement
Financial statements presenting data for multiple time periods side by side, enabling analysis of trends and changes over time.
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07
Income & Results
Deficit
A shortfall or negative balance representing the amount by which expenses or liabilities exceed revenues or assets.
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08
Reporting Standards & Bodies
Disclosure
The release of relevant financial or non-financial information that helps stakeholders understand a company's operations, risks, and prospects.
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09
Reporting Standards & Bodies
External Reporting
The communication of financial and operational information to outside stakeholders, including investors, creditors, regulators, and the public.
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10
Reporting Standards & Bodies
Financial Accounting Standards Board (FASB)
The primary organization responsible for establishing accounting standards for public and private companies and nonprofit organizations in the United States.
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11
Core Statements
Financial Statements
Structured presentations of an organization's financial position, performance, and cash flows, typically including the balance sheet, income statement, statement of cash flows, and statement of changes in equity.
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12
Forecasting & Projections
Forecast
A prediction of future financial outcomes based on historical data, market trends, and assumptions about future conditions.
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13
Reporting Standards & Bodies
GAAP
Generally Accepted Accounting Principles.
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14
Income & Results
Income
The monetary value of economic benefits earned through business operations, investments, or other sources.
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15
Core Statements
Income Statement
A financial report that summarizes revenues, costs, and expenses over a specific period to show an organization's operating performance and profitability.
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16
Income & Results
Loss
A decrease in economic benefits resulting from business activities, typically when expenses exceed revenues or when assets decline in value.
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17
Income & Results
Net Assets
The difference between total assets and total liabilities, representing the residual interest in an organization's resources.
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18
Income & Results
Net Income
The excess of revenues over expenses for a period, representing the bottom-line profit or loss after considering all operating and non-operating items.
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19
Income & Results
Net Sales
Total sales revenue less returns, allowances, and discounts, representing the actual revenue earned from goods or services sold.
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20
Income & Results
Net Worth
The difference between total assets and total liabilities, representing the owner's equity in a business or an individual's personal wealth.
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21
Forecasting & Projections
Pro Forma
Financial statements or analysis based on assumptions or hypothetical conditions, typically used for planning or illustrating potential outcomes.
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22
Forecasting & Projections
Projection
A financial forecast that reflects management's hypothetical assumptions about future events and actions.
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23
Forecasting & Projections
Prospective Financial Information
Forward-looking financial data, including forecasts and projections, prepared to help stakeholders understand potential future financial positions and results.
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24
Income & Results
Revenues
Income generated from normal business operations, typically from selling goods or services.
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25
Core Statements
Statement of Cash Flows
A financial statement showing how changes in balance sheet accounts and income affect cash and cash equivalents.
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26
Reporting Standards & Bodies
The Accounting Principles Board
The predecessor to today's Financial Accounting Standards Board (FASB), operating from 1959 to 1973.