Basic Financial Concepts

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

The point at which total revenues equal total costs, resulting in neither profit nor loss.

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

The total income generated by the sale of goods or services related to the company's primary operations.

Resources owned by a company that have economic value and can provide future benefits.

Obligations or debts that a company owes to outside parties, which are settled over time through the transfer of economic benefits.

The value of the shares issued by a company, representing ownership interest held by shareholders in the company.

The reduction in the value of an asset over time, due in particular to wear and tear.

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.