Understanding key financial documents used in reporting a company's financial performance.
balance sheet – a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
income statement – a financial statement that reports a company's revenues and expenses over a period, showing profit or loss.
cash flow statement – a financial statement that summarizes the amount of cash entering and leaving a company.
statement of shareholders' equity, also called statement of stockholders' equity in the US – a financial statement that shows changes in the value of shareholders' equity over a period.
assets – resources owned by a company that have economic value.
liabilities – obligations or debts that a company owes to others.
equity – the residual interest in the assets of the company after deducting liabilities.
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journal entry – a record of a financial transaction in accounting.
posting – the process of transferring journal entry amounts to ledger accounts.
Jakub Marian