Financial statements

Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in External Financial Reporting Decisions. 18 min read, ~2,708 words.

Four required statements tie together: net income flows from the income statement into retained earnings on the equity statement; ending equity and ending cash tie back to the balance sheet. Voting interest model controls at greater than 50% ownership; VIE model applies when an investor is the primary beneficiary of...