Financial Statements

Income Statement: Definition, Types, Templates, Examples, and More

Definition: The income statement is one of the five financial statements that report and present an entity’s financial transactions or performance, including revenues, expenses, net profit, or loss, and other P&L Items for a specific period of time. This is also known as the statement of financial performance because it shows how the entity financially …

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Just-In-Time: History, Objective, Productions, and Purchasing

History of Just In Time (JIT): Just In Time, sometimes called TOYOTA Manufacturing Production System, is part of the Lean Manufacturing Production System. There is a long story before becoming the Just-In-Time that we know today. The Just In Time concept was first initiated by Eli Whitney in 1799, who has a large contract with the …

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5 Main Elements of Financial Statements: Assets, Liabilities, Equity, Revenues, Expenses

Overview: Financial statements are the important reports of the entity that provide the entity’s financial information at a specific period of time to be used by many stakeholders such as management, employees, the board of directors, investors, shareholders, customers, suppliers, bankers, and other related stakeholders. These statements are prepared as the requirement of management, owners, …

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What is asset? Definition, Explanation, Types, Classification, Formula, and Measurement

Definition: The definition of assets refers to the resource controlled by the entity as a result of past events and expected to have future economic benefits inflow to the entity. This is what Conceptual Framework said. The company’s assets, under the Conceptual Framework, could be range from tangible to intangible and from current assets to non-current assets. …

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3 Main Purposes of Financial Statements (Explained)

Overview: Financial statements are the reports of the entity’s financial transactions and events, and they are prepared and used for many different purposes. In general, there are five types of financial statements, and those statements contain five elements on these statements. These statements and elements are prepared and presented for their own different purposes and …

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