Financial Statements Overview

Flashcards covering key vocabulary related to financial statements and accounting concepts.

Profit and loss account

A financial statement showing revenue and expenditure, reflecting total sales and costs.

Turnover

The total amount of business done by a company during the year; synonymous with total sales.

Dividends

Payments made to shareholders from a company's profit.

Balance sheet

A financial statement that shows a company's financial situation at a particular date, listing assets, liabilities, and shareholders' funds.

Liabilities

Money that a company owes to others, such as debts, taxes, and interest.

Assets

Resources owned by a company that are expected to bring future economic benefits.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities; also known as owners' equity.

Cash flow statement

A financial statement that shows the flow of cash in and out of a business over a period.

Negative items

Items on financial statements that indicate a financial obligation or potential loss, often denoted with brackets.

Consolidated accounts

Financial statements that combine the balance sheets and profit and loss accounts of a parent company and its subsidiaries.