| balance sheet | A statement showing a firm's accounting value on a particular date. It reflects the equation, Assets = Liabilities + Stockholders' equity.
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| cash flow | Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and (3) cash flow from changes in net working capital.
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| change in net working capital | Difference between net working capital from one period to another.
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| free cash flow | Cash flow after taxes, interest and all positive NPV opportunities.
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| generally accepted accounting principles (GAAP) | A common set of accounting concepts, standards, and procedures by which financial statements are prepared.
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| income statement | Financial report that summarizes a firm's performance over a specified time period.
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| noncash items | Expense against revenue that does not directly affect cash flow, such as depreciation and deferred taxes.
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| operating cash flow | Earnings before interest and depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.
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| total cash flow of the firm | Total cash inflow minus total cash outflow.
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