Josh Goldberg
HW Ch.3 Part I
ST-1
a.
Annual report
: Report issued annually by a corporation to its stockholders. It contains
basic financial statements as well as management’s analysis of the firm’s past operations
and future prospects.
Balance Sheet
: A statement of a firm’s financial position at a specific point in time.
Income Statement
: A report summarizing a firm’s revenue’s expenses, and profits during
a reporting period, generally a quarter of a year.
Statement of Cash Flow
: A report that shows how things that affect the balance sheet
and income statement affect the firm’s cash flows.
Statement of Stockholders’ Equity
: A statement that shows by how much a firm’s equity
changed during the year and why this change occurred.
b.
Stockholders’ Equity:
It is the amount that stockholders paid to the company when they
bought shares the company sold to raise capital, in addition all of the earnings retained
over the years.
