Accounting

Financial Reporting: Important Definitions

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.

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