Financial Statements
The statements and line items that record what a company owns, owes, and earns. 24 topics.
Balance Sheet
A statement of what the company owns and owes at a single date, and the equity that balances the two.
Profit and Loss Statement (P&L)
The statement of revenue, expenses, and profit over a period.
Cash Flow Statement
The bridge from profit to the change in cash, split into operating, investing, and financing cash flows.
Assets
Resources the company controls and expects to bring future economic benefit.
Current Assets
Assets expected to be turned into cash, sold, or consumed within the operating cycle or twelve months.
Non-Current Assets
Assets the company expects to hold beyond twelve months. Also called long-term or fixed assets in older language.
Fixed Assets
Tangible long-lived assets used to produce goods or services: land, buildings, plant, and equipment.
Intangible Assets
Non-physical assets such as software, licences, brands, customer relationships, and patents.
Liabilities
Present obligations that will require an outflow of economic resources.
Current Liabilities
Obligations due within twelve months or the operating cycle.
Non-Current Liabilities
Obligations due after twelve months.
Shareholders' Equity
The residual interest in assets after deducting liabilities. It belongs to the owners.
Reserves and Surplus
The part of equity that is not paid-up share capital: retained earnings and other reserves.
Retained Earnings
Cumulative profit that has not been paid out as dividends.
Working Capital
The capital tied up in the day-to-day cycle of inventory, receivables, and payables.
Net Working Capital
Current assets minus current liabilities. The accounting measure of the short-term cushion.
Contingent Liabilities
Possible obligations that depend on a future event, disclosed when an outflow is not yet probable or not reliably measurable.
Depreciation
The systematic charge that spreads the cost of a tangible asset over its useful life.
Amortization
The systematic charge that spreads the cost of an intangible asset, and sometimes of a loan's fees, over its life.
Capital Expenditure (CAPEX)
Cash spent to buy, build, or upgrade long-lived assets.
Operating Expenditure (OPEX)
The running costs of the business that are expensed as incurred, rather than capitalised.
Accrued Expenses
Costs that have been incurred but not yet paid or invoiced, recognised as a liability.
Deferred Revenue
Cash collected from customers before the company has delivered the goods or service. A liability, not profit yet.
Goodwill
The premium paid in an acquisition above the fair value of the identifiable net assets.