Statements required by Generally Accepted Accounting Principles (GAAP ... creditors to evaluate a company's financial health and earnings potential. The three major financial statement reports ...

These include retained earnings (better known ... U.S. companies issuing financial statements must use this group of accounting principles, issued by the Financial Accounting Standards Board ...

A basic principle of accounting is that net operating losses are subtracted from retained earnings and thus from capital. If ...

Publicly traded companies must use the accrual accounting method which is standardized by generally accepted accounting ...