Generally Accepted Accounting Principles (GAAP) are a set of accounting standards and principles used to prepare and present financial statements. GAAP provides a framework for how financial information should be recorded, reported, and disclosed by companies. Here are some key use cases for GAAP: GAAP is essential for ensuring the consistency, reliability, and transparency of […]

The statement of cash flows, also known as the cash flow statement, is a financial statement that provides insights into the cash inflows and outflows of a company over a specific period. It categorizes cash flows into three main activities: operating, investing, and financing. Here are the key parts of the statement of cash flows: […]

An income statement, also known as a profit and loss statement or statement of income, is one of the three primary financial statements used to assess a company’s financial performance. It provides a summary of a company’s revenues, expenses, gains, and losses over a specific period of time, typically a quarter or a year. The […]

A balance sheet, also known as a statement of financial position, is one of the three primary financial statements used to assess a company’s financial health at a specific point in time. It provides a snapshot of a company’s assets, liabilities, and shareholders’ equity. A typical balance sheet consists of the following major parts: Assets: […]