F - Acounting Glossary
Accounting definitions.
Source: Wikipedia.org
Financial
accountancy
Financial Accountancy (or Financial Accounting)
is the branch of accounting concerned with the
preparation of financial statements for outsider
use. The accounting equation (Assets = Liabilities
+ Owners’ Equity) and financial statements
are the main topics of financial accounting.
Financial statements
In the modern capitalist system, most governments
require publicly-traded companies to issue a set
of documents each year called financial statements
or financial reports. This set most often consists
of the "balance sheet", the "income
statement", the "statement of retained
earnings", and the "statement of cash
flows", in addition to supplementary notes
and management discussion. In the United States,
publicly-traded companies are required to prepare
based on generally accepted accounting principles.
Forensic accounting
Forensic accounting is the specialty practice
area of accounting that describes engagements
which result from real or anticipated litigation.
Broadly speaking, these engagements fall into
one of four categories: economic damages, family
law, fraud and other forms of economic crime,
and business valuation.
Free cash flow
Free cash flow measures a firm's cash flow remaining
after all expenditures required to maintain or
expand the business, including interest payments
as well as investments in assets used to maintain
or expand the business (including but not limited
to those described as "property, plant and
equipment" or "PP&E").
