Introduction to Accounting and Business - Financial Statements

4 important questions on Introduction to Accounting and Business - Financial Statements

What are Financial Statements?

Financial reports that summarise the effects of events on a business

What is Net Income, Net Profit, or Earnings?

The amount by which revenues exceed expenses

What is an Retained Earnings Statement?

A summary of changes in the retained earnings that have occurred during a specific period of time, such as a month or a year
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What is a Balance Sheet?

A list of the assets, liabilities, and stockholders’ equity as of a specific date, usually at the close of the last day of a month or a year

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