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Financial Statement Basics

Horizontales
This word means the same thing as net income to most people but is not typically used in accounting circles
The American Institute of Certified Public Accountants is a national professional organization for accountants
Assets must equal liabilities plus equity
A summary of cash inflows and cash outflows for a specific period of time
Public companies are required to report to this agency
Verticales
A summary of revenues earned and expenses incurred
Detailed information provided along with a particular financial statement
Payments to shareholders
Refers to the income statement, balance sheet, and statement of cash flows as a complete set of reports
A systematic examination of a company's financial statements
A summary of assets, liabilities, and equity amounts
The financial accounting standards board is responsible for establishing accounting rules and standards