FINANCIAL ACCOUNTING EXAM REVISION STUDYGUIDE; DEFINITION OF TERMS

Statement of Equity The Statement of Equity is a financial statement used in sole proprietorship and partnerships and is found in the financial statement section of the annual report. Divestiture Details Divestiture Details gives the user additional disclosure regarding numbers in financial statements. It is found in the notes to financial statements. Discussion of Market Risk The Discussion of Market Risk is part of the management discussion and analysis (MD&A) Statement of Cash Flows The Statement of Cash Flows is a financial statement and is found in the financial statement section of the annual report. Segment Disclosure Segment Disclosure gives the user additional disclosure regarding numbers in financial statements. It is found in the notes to financial statements. Unqualified Opinion An Unqualified Opinion is the most common type of auditor's opinion and is found in the auditor's report Quarterly Financial Data Quarterly Financial Data gives the user additional disclosure regarding numbers in financial statements. It is found in the notes to financial statements. Discussion of Business Outlook The Discussion of Business Outlook is part of the management discussion and analysis (MD&A). Summary of Significant Accounting Policies Summary of Significant Accounting Policies gives the user additional disclosure regarding numbers in financial statements. It is found in the notes to financial statements. Details of Bond Issuances Details of Bond Issuances gives the user additional disclosure regarding numbers in financial statements. It is found in the notes to financial statements. statement of changes in retained earnings used to show changes to the Retained Earnings account over a specific period of time. Items listed on the statement of changes in retained earnings include the beginning balance in the Retained Earnings account, the net income (or net loss) for the period, the amount of dividends for the period, and the ending balance in the Retained Earnings account. These items are linked by the following equation. Retained earnings (beginning balance) + Net income - Dividends = Retained earnings (ending balance) income statement used to show all revenue earned and all expenses incurred over a specific period of time. The statement reports the net income (or net loss) as the difference between total revenues and total expenses.