The following is a listing of key terms commonly used in financial statements and annual reports.
Assets: Resources owned by a company that has future economic value measurable in dollars. Examples include cash, investments, accounts receivable, inventory, supplies, land, buildings, equipment, and vehicles. Assets are reported on the balance sheet and are equal the sum of Liabilities + Owner’s (Stockholders’) Equity.
Liabilities: Amounts owed to lenders and suppliers, and often have the word “payable” in the account title.
Owner’s (Shareholder’s) Equity: The book value of a company equal to the recorded amounts of assets minus the recorded amounts of liabilities. This amount represents the capital theoretically available ...