Financial Statement

Companies prepare (?????) that provide relevant financial data for internal and external users.

          Also called an earnings statement or a profit and loss statement. It is an accounting statement that matches a company's revenues with its expenses over a period of time, usually a quarter or a year.

          The purpose of the (?????) is to provide a financial summary of the firm's operating results during a specified time period.

          It is a flow measure statement, meaning that each value on an income statement represents the cumulative amount of that item through the given accounting period.

Also called Financial Position Statement.

reports the assets, liabilities, and owner's equity at a specific date. In the (?????) , assets are listed at the top, followed by liabilities and owner's equity. Total assets must equal total liabilities and owner's equity.

prepared at a specific moment in time (e.g., the month-end or year-end) to present the company's financial condition.

The statement balances the firm's assets (what it owns) against its financing, which can be either debt (what it owes) or equity (what was provided by owners).

                are assets that a company expects to convert to cash or use up within one year or its operating cycle, whichever is longer.

are generally

(1) investments in stocks and bonds of other companies that are normally held for many years,

(2) (?????) assets such as land or buildings that a company is not currently using in its operating activities, and

(3) long-term notes receivable.