Financial statements are written documents reflecting the business activities and financial results of the enterprise.
The balance sheet gives an overview of assets, liabilities and equity in a snapshot over time.
The income statement mainly focuses on the income and expenses of the company for a certain period. After expenses are deducted from income, the report gives a figure of the company’s profit, called net income.
The Cash Flow Statement (CFS) measures how well a company generates cash to pay off its debt obligations, fund its operating expenses, and fund investments.
The statement of changes in equity shows how profits are kept internally for future growth or distributed to external parties.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.