Financial Reporting Terms Flashcards
Cash Flow Elements
Operating Activities
Investing Activities
Financing Activities
Operating Activities
Transactions relating to the production of goods and services or other normal business activities.
Investing Activities
Transactions relating to acquiring or disposing long-lived productive assets.
Financing Activities
Transactions relating to owners or creditors.
Income Statement Elements
Revenues
Expenses
Net Income
Revenues
Increase in owners’ equity from providing goods and services.
Expenses
Decrease in owners’ equity incurred in generating revenue.
Net Income
= revenue - expenses
Balance Sheet Elements
Assets
Liabilities
Stock Holders Equity
Assets
Business owned resources expected to bring future economic benefit.
Liabilities
Claims on assets by creditors (non owners) that represent an obligation to make future payments of cash, goods or services.
Stock holders equity/ owner’s equity.
Claims on assets by owners of business.
