12101324 - Master Compliance Training Book

12/6/24

Financial statements

§ Snapshot of a point in time. Top half are assets, bottom half is liabilities and net position. ____________________________________ § Covers a period of time (quarter or year). Illustrates growth and profitability. Starts with revenue line and deducts expenses ____________________________________ § Cash movement of the enterprise. Answers the question, how much cash is being generated and what is it being spent on? ____________________________________

§ Balance Sheet „ Statement of net position

§ Income Statement „ Statement of revenues, expenses and changes in net position

§ Statement of Cash flows

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Statement of net position

§ Reports all of the entity’s assets, liabilities and net position at a specific point in time (ie December 31, 2024) § Presented in a comparative format § Broken out between current and non-current § Assets are categorized based on how fast they can be converted to cash

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