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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