Financial Statements

Foundational bookkeeping relationship showing that assets are financed by liabilities and equity.

Statement showing assets, liabilities, and equity at a specific date so readers can assess financial position and capital structure.

Accounting value recorded in the books, usually referring either to an asset's net amount or to a business's net assets after liabilities.

Statement grouping cash inflows and outflows into operating, investing, and financing activities for a reporting period.

Financial statement that explains how equity balances changed during the reporting period.

Asset-related account with a credit balance that offsets a linked asset without removing the asset's original cost.

Assets expected to be collected, sold, or consumed within one year or the normal operating cycle.

Obligations expected to be settled within one year or the normal operating cycle, depending on the reporting context.

Liquidity ratio comparing all current assets with current liabilities to assess short-term coverage.

Ratio showing gross profit as a share of revenue after cost of goods sold has been deducted.

Statement summarizing revenue, expenses, gains, and losses over a period to show whether operations produced profit or loss.

Obligations due beyond one year or the operating cycle, forming the longer-dated debt and obligation side of the balance sheet.

Accumulated profit kept in the business after losses and dividends, reported within equity rather than as a cash balance.

Listing of ledger account balances in debit and credit columns, used to check posting accuracy before statements are finalized.

Difference between current assets and current liabilities, showing the short-term resource cushion available for operations.