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Vertical Analysis
A financial analysis method in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) in a balance sheet is represented as a proportion of the total account.
Financial Statement
A summary report that quantitatively describes the financial health of a company. This includes the balance sheet, income statement, and statement of cash flows.
Deferrals
Accounting method that involves postponing the recognition of certain revenues or expenses until a later accounting period to match them with the period they affect.
Accruals
Expenses and revenues that have been incurred or earned but not yet recorded in the accounts.
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