Accounting & Financial Statements Basics

What financial statement shows a company's revenues, expenses, and profit over a period of time?

The income statement

What financial statement shows a company's assets, liabilities, and equity at a specific point in time?

The balance sheet

What is the basic accounting equation?

Assets = Liabilities + Equity

What do we call something a business owns that has value, like cash, equipment, or inventory?

An asset

What do we call money a business owes to others, like loans or unpaid bills?

A liability