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Understanding Financial Statements

Horizontales
Revenues minus expenses
The amount the owner has invested in the business
This account is created when a sale is made to a customer who will pay later
Provides a snapshot of company on a particular date, usually year end
What a company owes
This statement shows revenue and expenses
An asset whose value will last more than 1 fiscal year
A transaction that does not involve an exchange of cash
Verticales
An example of a non-cash expense
This account is created when inventory is purchased from a supplier and the company will pay at a later date
Earnings before interest, taxes, depreciation and amortization
What a company owns