The Income Statement shows a company's financial performance.
List of an entity's assets, liabilities and owners' equity as at a specific date. Also called the statement of financial position.
Assets, Current Assets, Non-Current Assets
Total Shareholders' Equity
Liabilities, Current Liabilities, Non-Current Liabilities
Reports cash receipts and cash payments classified according to the entity's major activities: operating, investing, and financing.
A business with a single owner. The single owner has the full liability.
A business with two or more owners. General partners share the liability, limited partners have no liability.
A business owned by shareholders. A corporation is a legal entity, an 'artificial person' in the eye of the law.
The branch of accounting that provides information to people outside the firm.
The branch of accounting that generates information for the internal decision makers of a business, such as top executives.
Generally accepted accounting principles - accounting guidelines, usually in reference to US standards as formulated by the Financial Accounting Standards Board (FASB). By 2014, US GAAP is expected to converge with IFRS.
Accounting guidelines, formulated by the International Accounting Standards Board (IASB).
Provide information to various user groups that is useful for their economic decision making.
What makes accounting information useful?
Balance between Qualitative Characteristics
Benefits vs. Costs
Asset, Property, Plant and Equipment (PPE)