What does financial statements mean on the CPA exam?
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Financial statements. The formal set an entity publishes: balance sheet, income statement, statement of cash flows, statement of changes in equity, and the notes. The notes are part of them, not an appendix.
Defined against ASC 205-10.
Which CPA exam sections use financial statements?
Financial statements appears in the FAR section of the CPA exam.
Related terms
- income statement: The statement of what was earned and spent over a period, ending in net income.
- statement of cash flows: The statement that explains the change in cash by sorting it into operating, investing and financing activity.
- balance sheet: A snapshot at one date of what the entity owns, what it owes, and the owners' residual.
- internal control over financial reporting: A process designed to provide reasonable assurance regarding the preparation of reliable financial statements.
- management's discussion and analysis: A narrative overview management provides ahead of the financial statements.
- management's specialist: An expert management uses to help prepare the financial statements, such as an actuary or an appraiser.