Intro financial statements

Intro financial statements - Basic Financial Statements...

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1 • Balance sheet (BS) Basic Financial Statements • Income statement (IS) • Statement of cash flows (SCF) Balance Sheet (BS) Asset = Liabilities + Shareholders’ Equity Current Noncurrent Current Noncurrent Contributed Capital Retained Earnings Balance Sheet (BS) Definitions Assets: Economic resources that are expected to generate future cash inflows Liabilities: Economic obligations to outsiders expected to generate future cash outflows Shareholders’ Equity: Residual interest in the firm’s assets after deducting liabilities Income Statement (IS) Revenue -Expenses (cost of goods sold and operating expenses) Operating Income - Interest Expense +/- Nonrecurring Gains or (Losses) Pretax Income - Income Taxes Net Income Income Statement (IS) Definitions Revenue: inflow of assets or reduction of liabilities from providing good or service in the normal operation of the business Expenses: outflow of assets or increase in liabilities from providing good or service in the normal
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Intro financial statements - Basic Financial Statements...

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