Financial Statements (Flashcards)

This financial statement reports a corporation’s revenues, expenses, gains, losses, and the resulting net income. This is sometimes referred to as the P&L.

This financial statement of a nonprofit organization reports its revenues and expenses in multiple columns in order to show the effects on unrestricted, temporarily restricted, permanently restricted, and total net assets.

This financial statement reports the major inflows and outflows of an organization’s cash according to operating, investing, and financing activities.

This is indicated by the date in the heading of an income statement.

This is indicated by the date in the heading of the balance sheet.

This financial statement reports all of the changes to the equity of a corporation that occurred during the periods shown in the heading.

This financial statement begins with the bottom line of the income statement and is followed by items involving currency translation, hedging, pensions, etc.

This term refers to an accounting year other than one ending on December 31.

The accounting period of January 1 through December 31 is known by this name.

This is the remainder after subtracting the cost of goods sold from net sales.

This type of financial statement has two or more columns of amounts so the reader can relate the most recent amounts to the amounts in an earlier accounting period.

This name applies to financial statements that are issued between the annual financial statements. An example is the quarterly financial statements.

This balance sheet classification includes cash and the resources that are expected to turn to cash within one year of the balance sheet date.

This balance sheet classification includes a company’s obligations that are due within one year of the balance sheet date and will require the use of a current asset or will create another current liability.

This is calculated by subtracting the amount of current liabilities from the amount of current assets.

This cost flow assumption removes from inventory the most recent costs first and charges them to the cost of goods sold. As a result, the older costs remain in inventory.

This contra stockholders’ equity account indicates the cost of a corporation’s own stock that has been repurchased from stockholders but has not been retired.

This term is used to indicate the common accounting rules and standards followed in the U.S. They are developed by the Financial Accounting Standards Board, which is not a government organization.

This term indicates that a U.S. corporation’s common stock is traded on a major stock exchange.

This widely used metric is a corporation’s net income minus its preferred dividend requirement (if any) divided by the weighted average number of shares of common stock outstanding.

This accounting method reports revenues when they are earned. It also requires large companies to report expenses when they occur.

This accounting method reports revenues when cash is received. It also reports expenses when they are paid.

This accounting assumption means that a U.S. corporation’s financial statements are not adjusted for changes in the purchasing power of the U.S. dollar.

This U.S. government agency has regulatory power over the U.S. stock exchanges and the reporting requirements of the corporations whose stock is traded on those stock exchanges.

These financial statements include a report of independent auditors/CPAs attesting to the financial statements’ fairness and compliance with generally accepted accounting principles.

These resources are owned by a company and have future economic value that can be measured in the company’s currency.

These obligations of a company are a major element of the balance sheet and include deferred revenues and customer deposits.

These are to be included with the external financial statements in order to comply with the full disclosure principle. They also contain a company’s significant accounting policies.