Lesson 2 of 26
Financial Reporting: The act of providing statutorily mandated financial information to the investing public; different countries have different requirements and standards.
Financial Statements Refer to a company’s: income statement, balance sheet, statement of cash flows, and/or statement of changes in owner’s equity.
Long-term Assets: Include long lived assets and long-term investments, both of which are reported on the balance sheet.
Long-lived Assets: Refer to fixed assets (property, plant, and equipment - PPE), natural resources, and intangible assets (such as patents or goodwill) carried on the balance sheet. Note that this sheet primarily discusses long-lived assets as PPE, but there is some discussion of intangible assets.
Inflation: The scenario where an economy or business environment is experiencing rising prices.
Deflation: The scenario where an economy of business environment is experiencing falling prices.