Asset is any resource owned or controlled by a business. Assets represent value that can be converted into cash. Assets are recorded on balance sheet under monetary value
Capital expenditures (CapEx) are investments in fixed assets for long-term productivity. Operating expenses (OpEx) cover daily costs essential for company survival
Income statement shows company's profit and loss over time. Divided into monthly or quarterly periods for internal reporting. Requires least information from balance sheet and cash flow statement
Cash flow statement reports cash generated and spent during specific period. Acts as bridge between income statement and balance sheet. Companies can choose direct or indirect presentation method. Most companies use indirect method
WIP represents partially finished goods awaiting completion in production. Includes raw materials, labor, and overhead costs at various production stages. Appears as current asset on balance sheet. Excludes value of raw materials not yet incorporated into saleable items
Free cash flow shows money left after operating expenses and capital expenditures. Higher FCF indicates better financial health and growth potential. FCF helps investors make better investment decisions