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Balance Sheetalance SheetA financial statement that summarizes a financial statement that summarizes acompany's assets, liabilities ...ompany's assets, liabilities ...

Unconsolidated Subsidiarynconsolidated SubsidiaryA company that is owned by a parent company that is owned by a parentcompany, but whose individual ...ompany, but whose individual ...

Accounting Theoryccounting TheoryAssumptions, methodologies and frameworksssumptions, methodologies and frameworksused in the study and ...sed in the study and ...

Administrative Budgetdministrative BudgetAn official, detailed financial plan for ann official, detailed financial plan for anupcoming period for .. .pcoming period for ...

All-Purpose Financial Statementll-Purpose Financial StatementA record of financial activity that is suitable record of financial activity that is suitablefor a variety ...or a variety ...

Financial Statement Analysisinancial Statement AnalysisThe process of reviewing and evaluating ahe process of reviewing and evaluating acompany's financial ...ompany's financial ...

DEFINITION of 'Financial Statements'EFINITION of 'Financial Statements'

Records that outline the financial activities of a business, an individualecords that outline the financial activities of a business, an individual

or any other entity. Financial statements are meant to present ther any other entity. Financial statements are meant to present the

financial information of the entity in question as clearly and conciselyinancial information of the entity in question as clearly and concisely

as possible for both the entity and for readers. Financial statements fors possible for both the entity and for readers. Financial statements for

businessesusinesses usually include:usually include: income statementsncome statements, balance sheetalance sheet,

statements of retained earningstatements of retained earnings andand cash flowsash flows, as well as other as well as other

possible statements.ossible statements.

Next Upext Up

BALANCE SHEETALANCE SHEETUNCONSOLIDATEDNCONSOLIDATED

SUBSIDIARY UBSIDIARY

 ACCOUNTINGCCOUNTING

THEORY HEORY

 ADMINISTRATIVEDMINISTRATIVE

BUDGETUDGET

BREAKING DOWN 'Financial Statements'REAKING DOWN 'Financial Statements'

It is a standard practice for businesses to present financial statements that adhere tot is a standard practice for businesses to present financial statements that adhere togenerallyenerally

accepted accounting principles (GAAP),ccepted accounting principles (GAAP), to maintain continuity of information andto maintain continuity of information and

presentation across international borders. As well, financial statements are often audited byresentation across international borders. As well, financial statements are often audited by

government agencies,overnment agencies, accountantsccountants, firms, etc. to ensure accuracy and for tax, financing or firms, etc. to ensure accuracy and for tax, financing or

investing purposes. Financial statements are integral to ensuring accurate and honestnvesting purposes. Financial statements are integral to ensuring accurate and honest

accounting for businesses and individuals alike.ccounting for businesses and individuals alike.

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