Assets

Assets are everything a business or person owns that has value.

✳️ Types of Assets:

1. Current Assets – Easily converted to cash:

Cash

Accounts receivable

Inventory

2. Fixed (Non-Current) Assets – Long-term value:

Property

Equipment

Vehicles

3. Intangible Assets:

Patents

Trademarks

Goodwill

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💰 P&L (Profit and Loss Statement)

Also called the Income Statement, it shows how much money a company makes or loses over a period (monthly, quarterly, yearly).

📋 P&L Includes:

Item Description

Revenue Total income from sales or services

Cost of Goods Sold (COGS) Cost to produce goods or services

Gross Profit Revenue – COGS

Operating Expenses Salaries, rent, marketing, etc.

Operating Profit Gross Profit – Operating Expenses

Net Profit (or Loss) Final profit after taxes, interest, etc.

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📈 Simple Example:

Assets Example:

Cash: $10,000

Equipment: $20,000

Inventory: $5,000

Total Assets = $35,000

P&L Example (for 1 month):

Revenue: $15,000

COGS: $5,000

Expenses: $6,000

Net Profit = $15,000 – $5,000 – $6,000 = $4,000

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