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2. Accounting equation - Wikipedia

   en.wikipedia.org/wiki/Accounting_equation

   The income and retained earnings of the accounting equation is also an essential component in computing, understanding, and analyzing a firm's income statement. This statement reflects profits and losses that are themselves determined by the calculations that make up the basic accounting equation.

3. Income statement - Wikipedia

   en.wikipedia.org/wiki/Income_statement

   An income statement or profit and loss account[ 1] (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, statement of earnings, operating statement, or statement of operations) [ 2] is one of the financial statements of a company and shows ...

4. Financial ratio - Wikipedia

   en.wikipedia.org/wiki/Financial_ratio

   Values used in calculating financial ratios are taken from the balance sheet, income statement, statement of cash flows or (sometimes) the statement of changes in equity. These comprise the firm's "accounting statements" or financial statements. The statements' data is based on the accounting method and accounting standards used by the ...

5. Accounting identity - Wikipedia

   en.wikipedia.org/wiki/Accounting_identity

   The most basic identity in accounting is that the balance sheet must balance, that is, that assets must equal the sum of liabilities (debts) and equity (the value of the firm to the owner). In its most common formulation it is known as the accounting equation: Assets = Liabilities + Equity. where debt includes non-financial liabilities.

6. Net income - Wikipedia

   en.wikipedia.org/wiki/Net_income

   Misconduct. v. t. e. In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes for an accounting period. [ 1][ 2] It is computed as the residual of all ...

7. Generally Accepted Accounting Principles (United States)

   en.wikipedia.org/wiki/Generally_Accepted...

   Accounting. Generally Accepted Accounting Principles ( GAAP or U.S. GAAP or GAAP (USA), pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC) [ 1] and is the default accounting standard used by companies based in the United States . The Financial Accounting Standards Board (FASB ...