Introduction to Economic Indicators and Financial Reporting

These flashcards cover essential terminology and concepts related to economic indicators and financial reporting, useful for exam preparation.

Leading Indicators

Economic indicators that tend to change before the economy as a whole changes, helping to predict future movements.

Coincident Indicators

Economic indicators that change simultaneously with the economy, providing data on current economic conditions.

Lagging Indicators

Economic indicators that change after the economy has already begun to follow a particular pattern or trend.

Balance Sheet

A financial statement providing a snapshot of a company's assets, liabilities, and equity at a specific point in time.

Assets

Resources owned by a corporation, including cash, accounts receivable, inventory, and fixed assets such as buildings.

Liabilities

Obligations or debts that a corporation owes to others, which can be current (due within one year) or long-term.

Net Worth

Also known as owner's equity, it is the residual interest in the assets of the entity after deducting liabilities.

CPI (Consumer Price Index)

An economic indicator that measures changes in the price level of a basket of consumer goods and services.

Retained Earnings

The accumulated net income of a company that has not been distributed to shareholders as dividends.

Gross Margin

The difference between sales revenue and cost of goods sold, indicating the amount available to cover other expenses.