Busting the accounting jargon

10 common accounting terms used in company financial statements

FINANCIAL STATEMENTS are the cornerstone of corporate reporting and decision-making, and are often the first section that one turns to when looking at a company’s annual report.

They provide investors, managers, regulators, and other stakeholders with insights into a company’s performance, financial position, and cash flow.  However, for those unfamiliar with accounting language, the terminology used in these documents can seem complex and technical.

Understanding key accounting terms is essential to interpreting what financial statements truly convey

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