INCOME STATEMENT

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

Cash Flow Statement

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