Financial Statements

A pro forma financial statement is a report that makes use of estimates, assumptions and projections to forecast the financial statements.

The statement of retained earnings, also known as the retained earnings statement, is a financial statement that shows the changes in a company’s retained earnings account for a period of time.

A statement of cash flows can be prepared by either using a direct method or an indirect method.

A statement of cash flows can be prepared by either using a direct method or an indirect method.

The statement of cash flows, sometimes called the cash flow statement, sums up how balance sheet changes can affect the cash account throughout the accounting period.

A statement of financial position is another name for the balance sheet.

A classified balance sheet is a financial statement that reports the assets, liabilities and equity of a company.

A single-step income statement is a format in which all of the expenses, including the cost of goods sold, are listed in one column.

The balance sheet is one of the general-purpose financial statements prepared during the accounting cycle.

The statement of stockholders’ equity is a financial statement that summarizes all of the changes that occurred in the stockholders’ equity accounts during the accounting year.

An extraordinary item is non-recurring in nature as it is infrequent and unusual in the normal course of a business’ operations.

Other comprehensive income (OCI) includes all those revenues, expenses, gains and losses that affect a company’s equity side of the balance sheet and have not yet been realized.

A profit and loss statement (P&L) is a financial statement that reflects the revenues and the expenses of a company for a given accounting period.

A multi-step income statement classifies the revenues, expenses, losses, and gains into operating and non-operating sections (commonly known as heads).

An income statement is one of the main financial statements used by accountants, analysts and business owners to show the profitability of a company during a specific period of time.

Operating cash flow (OCF) is a measurement of the amount of cash brought in by a company’s normal business operations.

Definition: Inventory is regularly referred to as goods.

Incurred Expenses are costs that a business will owe after receiving goods or services.

Controlling the flow of funds through a business is an important management activity.

This Basic Financial Statements overview serves as an introduction to financial statements and financial statement concepts.