Income Statement

Item Definition
Total money earned from selling goods or services before any
Revenue (Sales)
expenses.
Sales Returns & Deductions from total revenue due to returns or discounts given
Allowances to customers.
Cost of Goods Sold The direct costs related to producing the goods or services sold
(COGS) by the company.
Revenue minus COGS; shows profit after covering direct
Gross Profit
production costs.
Costs of running the company (e.g., rent, salaries, marketing)
Operating Expenses
not directly tied to production.
Depreciation & Gradual reduction in value of assets over time (depreciation for
Amortization physical assets, amortization for intangible assets).
Gross profit minus operating expenses; shows profit from core
Operating Income
business operations.
Interest Expense The cost of borrowing money, typically from loans or bonds.
Interest Income Money earned from interest on investments or cash holdings.
Other Income/ Any non-operating income or expenses (e.g., interest,
Expenses investments, one-time gains/losses).
Earnings Before Tax Profit before paying taxes; operating income plus/minus other
(EBT) income/expenses.
Taxes Amount of tax the company owes to the government.
Final profit after all expenses, including taxes, have been
Net Income
deducted.
Non-Operating Income or costs not related to the main business (e.g., gain
Income/Expenses from selling an asset).
Rare and unusual gains or losses that are not part of regular
Extraordinary Items
business activities.
Includes net income plus other gains/losses (like currency
Comprehensive
exchange rates, unrealized gains on investments) that impact
Income
equity.
 BALANCE SHEET

Item Definition
Assets Resources owned by the company that have economic value.
Assets expected to be converted into cash or used up within
Current Assets
one year (e.g., cash, accounts receivable, inventory).
Cash and Cash Liquid assets that can be quickly converted to cash, including
Equivalents bank accounts and short-term investments.
Money owed to the company by customers for goods or
Accounts Receivable
services provided on credit.
Inventory Goods available for sale or raw materials used in production.
Payments made in advance for goods or services to be
Prepaid Expenses
received in the future.
Long-term assets that are not expected to be converted into
Non-Current Assets cash within one year (e.g., property, equipment, intangible
assets).
Property, Plant, and Tangible fixed assets used in operations, such as land,
Equipment (PP&E) buildings, and machinery.
Non-physical assets with value, like patents, trademarks, and
Intangible Assets
goodwill.
Liabilities Obligations or debts the company owes to external parties.
Debts due within one year (e.g., accounts payable, short-term
Current Liabilities
loans).
Money owed by the company to suppliers for goods and
Accounts Payable
services purchased on credit.
Short-Term Debt Loans or borrowings that are due within one year.
Expenses that have been incurred but not yet paid (e.g., wages,
Accrued Liabilities
taxes payable).
Long-term debts that are not due within one year (e.g.,
Non-Current Liabilities
long-term loans, bonds payable).
Taxes that have been accrued but are not payable until future
Deferred Tax Liabilities
periods.
The residual interest in the assets of the company after
Shareholders' Equity
deducting liabilities; represents the owners' stake.
Common Stock Equity capital raised by issuing shares to investors.
A class of stock with a fixed dividend that has priority over
Preferred Stock
common stock in asset liquidation.
Accumulated profits that have been reinvested in the business
Retained Earnings
instead of being distributed as dividends.
The amount received from shareholders above the par value of
Additional Paid-In Capital
the stock issued.
Shares that were repurchased by the company, reducing the
Treasury Stock
amount of outstanding stock.
Gains and losses that are not included in net income but affect
Accumulated Other
equity, such as foreign currency translations and unrealized
Comprehensive Income
gains on investments.
 Cash Flow Statement
Item Definition
Cash generated or used in the core business operations; reflects
Cash Flows from
cash received from customers and cash paid to suppliers and
Operating Activities
employees.
Profit or loss for the period, as reported in the P&L statement,
Net Income
adjusted for non-cash items.
Depreciation & Non-cash expenses that reduce net income but do not involve cash
Amortization outflows; added back to cash flow.
Adjustments for changes in current assets and current liabilities
Changes in Working
(e.g., accounts receivable, inventory, accounts payable) that affect
Capital
cash flow.
Cash spent on or generated from investments in long-term assets
Cash Flows from
(e.g., purchase/sale of property, plant, and equipment, or
Investing Activities
investments in other companies).
Capital Expenditures Cash used to acquire or upgrade physical assets such as buildings
(CapEx) or machinery.
Proceeds from Sale of
Cash received from selling long-term assets.
Assets
Cash flows related to borrowing, repaying debt, or equity
Cash Flows from
transactions (e.g., issuing shares, paying dividends, taking on
Financing Activities
loans).
Issuance of Debt Cash received from taking on new loans or issuing bonds.
Repayment of Debt Cash paid to reduce or pay off outstanding debt obligations.
Issuance of Stock Cash received from selling company shares to investors.
Dividends Paid Cash distributed to shareholders as a return on their investment.
Cash Flows from Foreign
Cash inflows and outflows related to international business activities.
Operations
The overall increase or decrease in cash during the reporting period,
Net Change in Cash calculated as the sum of cash flows from operating, investing, and
financing activities.
Beginning Cash Balance Cash available at the start of the reporting period.
Cash available at the end of the reporting period, calculated as
Ending Cash Balance
beginning cash balance plus net change in cash.

Non-Cash Investing and Significant transactions that do not involve cash flow but impact the
Financing Activities balance sheet (e.g., converting debt to equity).