This week we will work with various online resources to boost our vocabulary. Your talk is going to be the following: collect 10 new business English words from the Finance / Banking and Accounting area and post them on the blog in the following format: new word - definition - synonyms - example
For example: Overheads
Definition: business expenses, such as rent, that are not directly attributable to any department or product and can therefore be assigned only arbitrarily.
Synonyms / Idioms / Expressions: Also called burden fixed costs indirect costs oncost.
Example: We have to cut costs in order to reduce overheads.
Synonyms / Idioms / Expressions: Also called burden fixed costs indirect costs oncost.
Example: We have to cut costs in order to reduce overheads.
As resources, you will use the following three websites:
1) YouTube: Video 1 Video 2 Video 3
2) BusinessEnglisSite : Test 1 Test 2 Test 3 Test 4 Test 5 Test 6
3) Accounting for Beginners: Read the article and answer the following questions:
1) YouTube: Video 1 Video 2 Video 3
2) BusinessEnglisSite : Test 1 Test 2 Test 3 Test 4 Test 5 Test 6
3) Accounting for Beginners: Read the article and answer the following questions:
* What are assets according to the article? * What do you know about fixed assets? * What are liabilities? * What is equity? * What are the three basic financial statements that you need to understand to run your business? * What is an Income Statement? * What is the cash flow statement?
Balance sheet
ReplyDelete- Definition: A statement of a business or institution that lists the assets, debts, and owners' investment as of a specified date.
- Synonyms: statement, report, account, budget, ledger, financial statement
- Example: This is the balance sheet of an attempt I made some years ago to carry out the idea of an International Association of Laborers--commonly known as THE International--or union of all workmen throughout the world in defence of the interests of labor.
Accounting
- Definition: The bookkeeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business.
- Synonyms: accountancy, auditing, book-keeping
- Example: They were years of the work, of the over- work, indeed, which falls to the lot of so many that I should be ashamed to speak of it except in accounting for the fact.
Appraise
- Definition: to estimate or calculate the value of an asset, such as a house or building.
- Synonyms: assess, judge, review, estimate, survey, price, rate, value, evaluate, inspect, gauge, size up
- Example: My heart, believe me, is able to appraise at its true worth all that you have done for me by protecting me from my enemies, and from hatred and persecution.
Shareholders' equity
- Definition: The net value of a company to its shareholders
- Synonyms: -
- Example: Shareholders' equity is the amount by which a company is financed through common and preferred shares.
Prudent
- Definition: To be careful or cautious in one's activities, especially by planning ahead for the future.
- Synonyms: cautious, careful, wary, discreet, canny, vigilant, circumspect
- Example: The engagement which you were eager to form a fortnight ago is no longer compatible with your views, and I rejoice to find that the prudent advice of your parents has not been given in vain.
Expense
- Definition: money paid out by a company
- Synonyms: cost, charge, expenditure, payment, spending, output, toll, consumption, outlay, disbursement
- Example: Price should be relieved from the charge and expense of one child entirely out of her great number.
Asset
- Definition: anything owned by a company that can be converted into cash or used to generate income
- Synonyms: benefit, help, service, aid, advantage, strength, resource, attraction, blessing, boon
- Example: For moral courage is a worthless asset on this little floating world.
Liability
- Definition: a financial obligation or debt held by a company
- Synonyms: financial obligation, indebtedness
- Example: There were accidents to machinery, the liability of trains to run off the line, collisions, bad weather, the blocking up by snow--were not all these against Phileas Fogg?
Loss
ReplyDelete- Definition: negative profit
- Synonyms: losing, waste, disappearance, deprivation, squandering, drain
- Example: It worried him considerably, but he felt that the only course was to hold on: in his circumstances the loss was too great for him to pocket.
Debt
- Definition: money owed by a company to another company or individual
- Synonyms: debit, bill, score, account, due, duty, commitment, obligation, liability
- Example: The public debt of the Union would be a further cause of collision between the separate States or confederacies.
According to the article assets is things that make you money.
Fixed assets are the more expensive, usually tangible items that you purchase for your business.
Equity is the money that you have personally invested in your business and the retained earnings from your business.
The second and probably most important financial statement is the Income Statement.The second one is the simple Income Statement: sales, expenses and total expenses. The third one is a cash flow statement.
The Income Statement is a snapshot of your business activity at a current point in time.
Cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.
1.What are assets according to the article?
ReplyDeleteAssets = things that make you money. Assets include current assets like: cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets.
2.What do you know about fixed assets?
Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.).
3.What are liabilities?
Liabilities =things that a company owes. Liabilities are: the bills that you owe, any loans and credit cards for your business.
4.What is equity?
Equity = the net worth of your business. Equity is the money that you have personally invested in your business and the retained earnings from your business.
5. What are the three basic financial statements that you need to understand to run your business?
The three basic financial statements that one needs to understand to run a business are: the Balance Sheet, the Income Statement and a cash flow statement.
6. What is an Income Statement?
The income statement is a snapshot of your business activity at a current point in time.
7.What is the cash flow statement?
A statement which shows where your cash position is. It is just like balancing your check book.
a)An accounting period is a period of time over which profits are calculated.
b)Accounts receivable refers to the money that is owed to the company by its clients/customers.
c)To accrue means to accumulate or increase.
d)Receipts = proof of payments (You should always keep receipts or other acceptable records of every payment to your business and every expenditure by your business.)
e)“Net profit after taxes" is what's called "the bottom line", - it's the net income after everything has been subtracted.
* What are assets according to the article?
ReplyDeleteThings that make you money; Assets include current assets like: cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets.
* What do you know about fixed assets?
Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.)
* What are liabilities?
Liabilities are: the bills that you owe, any loans and credit cards for your business.
* What is equity?
Equity is the money that you have personally invested in your business and the retained earnings from your business.
* What are the three basic financial statements that you need to understand to run your business?
The first of these forms is the Balance Sheet. It is a comparison of your assets (things that make you money) on the left, and liabilities (things that you owe) and equity (the net worth of your business).
* What is an Income Statement?
Income statement is a snapshot of your business activity at a current point in time
* What is the cash flow statement?
The cash flow statement is the third financial form that you should prepare on a regular basis, at least weekly.
1) Word Assets
Definition-Things of value owned by a business
Synonyms- capital,goods,money,resources
Examples All assets increase with a debit entry and decrease with a credit entry
2) Word Accounts receivable
Definition refers to the money that is owed to the company by its clients/customers
Synonyms bill,debt,receivable
Examples Accounts receivable shows how much money your customers owe you
3) Word Transfer payment
Definition is a non-compensatory government payment to individuals (such as welfare or social security benefits).
Synonyms redistribution of income
Examples Examples of certain transfer payments include welfare (financial aid) , social security , and government subsidies for certain businesses (firms).
MELNICENCO TATIANA FB-29G
4) Word Liability
ReplyDeleteDefinition- the various expences of operating a business that cannot be charget to any one product
Synonyms-financial obligation,debt,claim.
Examples Liabilities either have a credit or no balance at all.
5) Word "expense"
Definition- if it is chargeable against revenue during an accounting period.
Synonyms cost, disbursement
Examples Expenses by the company's contribution margin ratio.
6) Word Balance sheet
Definition- A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth.
Synonyms-statement of condition
Examples A standart company balance sheet has three parts:assets,liabilities and ownership equity.
7) Word Overhead
Definition- The ongoing administrative expenses of a business which cannot be attributed to any specific business activity, but are still necessary for the business to function.
Synonyms budget, burden, cost, depreciation, expense, expenses, insurance, outlay, rent, upkeep
Examples All businesses have overhead. Overhead got its name to represent assets that necessary to help the business run, but don't directly contribute to the bottom line.
8) Word Auditor
Definition- An individual qualified (at the state level) to conduct audits.
Synonyms accountant, actuary, bookkeeper, cashier
Examples Accountants and auditors help to ensure that firms are run efficiently, public records kept accurately, and taxes paid properly and on time.
9) Word rule of thumb
Definition- formula or observation accepted generally as a practical knowledge based on experience, says that 20% of the product line produces 80% of the sales
Synonyms empirical formula
Examples A rule of thumb is a principle with broad application that is not intended to be strictly accurate or reliable for every situation.
10) Word Equity
Definition- ownership interest or claim of a holder of common stock and some types of preffered stock of a firm
Synonyms goods,possession
Examples On a balance sheet ,equity represents funds contributed by the owners plus retained earning or minus the accumulated losses.
MELNICENCO TATIAN FB-29G
10 NEW BUSINESS ENGLISH WORDS FROM THE FINANCE/BANKING AND ACCOUNTING AREA:
ReplyDelete1. TO ACCRUE
Definition: to increase by growth or addition, especially (of capital) to increase by periodic addition of interest
Synonyms / Idioms / Expressions: accumulate, issue, increase, grow, collect, gather, flow, build up, enlarge, follow, ensue, pile up, amass, spring up, stockpile
Example: You should never let interest payments accrue.
2. AUDITOR
Definition: an accountant who receives the accounting procedures of a company
Synonyms / Idioms / Expressions: inspector, critic, investigator, supervisor, superintendent, censor, examiner, scrutinizer, checker, overseer, scrutineer
Example: They were singled out for criticism in the auditor's report.
3. EQUITY
Definition: the ownership interest of shareholders in a corporation
Synonyms / Idioms / Expressions: interest, part
Example: The term « equity » refers to the owner’s share of the business.
4. TRANSFER PAYMENT
Definition: a non-compensatory government payment to individuals, as for welfare or social security benefits.
Synonyms / Idioms / Expressions: expenditure, outgo, outlay, spending
Example: The transfer payment can be as welfare or social security benefits.
5. RECEIPTS
Definition: a written acknowledgment by a receiver of money, goods, etc., that payment or delivery has been made
Synonyms / Idioms / Expressions: ticket stub, stub
Example: The receipts are a kind of proofs of payment.
6. CHECKING ACCOUNT
Definition: a bank account in which checks may be written against amounts on deposit.
Synonyms / Idioms / Expressions: current account
Example: His checking account is apart from his personal finances.
7. BALANCE SHEET
Definition: a summary of a person's or organization's assets, liabilities and ownership equity on a specific date, such as the end of its financial year.
Synonyms / Idioms / Expressions: statement of financial position
Example: The balance sheet is the only statement which applies to a single point in time.
8. INCOME STATEMENT
Definition: a financial statement for companies that indicates how revenue is transformed into net income.
Synonyms / Idioms / Expressions: Profit and Loss Statement (P&L)
Example: - INCOME STATEMENT BOND LLC –
For the year ended DECEMBER 31 2007
$ $ Revenues: GROSS PROFIT (including rental income) 496,397
------- Expenses: ADVERTISING 6,300
INSURANCE 750
LEGAL & PROFESSIONAL SERVICES 1,575
RENT 13,000
UTILITIES 491
PRINTING, POSTAGE & STATIONERY 320 ENTERTAINMENT 5,550
LICENSES 632
BANK & CREDIT CARD FEES 144
BOOKKEEPING 3,350
EMPLOYEES 88,000
RENTAL MORTGAGES AND FEES 74,400
-------- TOTAL EXPENSES (194,512)
-------- NET INCOME 301,885 ========
9. CASH FLOW STATEMENT
Definition: a financial statement that shows a company's incoming and outgoing money (sources and uses of cash) during a time period (often monthly or quarterly)
Synonyms / Idioms / Expressions: statement of cash flows
Example: The cash flow statement reflects a firm's liquidity or solvency.
10. TO MONITOR
Definition: to seek information about an agent's behavior; a device that provides such information.
Synonyms / Idioms / Expressions: to register
Example: With simple financial statements, you can monitor your business and make corrections when things aren't going well.
THE ANSWERS TO THE QUESTIONS, REGARDING THE ARTICLE:
ReplyDelete* What are assets according to the article?
According to the article, assets represent the “things that make you money” and these include current assets like: cash in bank, savings, inventory, prepaid expenses, accounts receivable and fixed assets.
* What do you know about fixed assets?
Fixed assets are the more expensive, usually tangible items that are purchase for a business (like computers, desks, equipment, etc.) As a rule anything that costs more than $1,000 should be capitalized and depreciated over time.
* What are liabilities?
Liabilities are consisted of the bills that are owed, any loans and credit cards for somebody’s business.
* What is equity?
Equity represent the money that the owner has personally invested in hie/her business and the retained earnings from his/her business.
* What are the three basic financial statements that you need to understand to run your business?
The three basic financial statements that you need to understand to run your business are: the Balance Sheet, the Income Statement and the Cash Flow Statement.
* What is an Income Statement?
An Income Statement in a snapshot of the business activity at a current point in time.
* What is the cash flow statement?
The cash flow statement is a financial form that has to be prepared on a regular basis, at least weekly, which shows the cash position of a business. It can be expressed in the following formula: Cash + Sources of Funds - Uses of Funds = Ending Cash.
1. Assets
ReplyDelete-definition: the property and claims against debtors that a business enterprise may apply to discharge its liabilities. Assets may be fixed, current, liquid, or intangible and are shown balanced against liabilities;
-synonims: A valuable item that is owned;
-examples: In the context of accounting, assets are either current or fixed.
2. Mislead
-definition: lead someone in the wrong direction or give someone wrong directions;
-synonims: misguide, lead astray, misdirect;
-examples: The pedestrian misdirected the out-of-town driver;
3. Auditor
-definition: a person qualified to audit accounts;
-synonims: attender, hearer, listener;
-examples: The main job of the auditor is verification of a company's financial records.
4. Equity
-definition: the interest of ordinary shareholders in a company;
-synonims: fairness;
-examples: Total assets minus total liabilities represents shareholder's equity
5. Appraise:
-definition: to make a valuation of, as for taxation purposes;
-synonims: survey;
-examples: He appraised the situation carefully before acting.
6. Depreciating:
-definition: tending to decrease or cause a decrease in value; "a depreciating currency"; "depreciatory effects on prices"
-synonims: depreciative, depreciatory;
-examples: In accounting,depreciation is a term used to describe the reduction in the value of an asset due to usage.
7. Statement
-definition: an account containing a summary of bills or invoices and displaying the total amount due;
-synonims: financial statement;
-examples:A Financial statement gives operating results for a specific period.
8. Assurance
-definition: A statement or indication that inspires confidence;
-synonims: pledge;
-examples:The President's assurances were not respected.
9. Profiteering
-definition: To make excessive profits on goods in short supply;
-synonims: extortion, exploitation, racketeering;
-examples: There has been a wave of profiteering and corruption.
10. Balance sheet
-definition: a statement that shows the financial position of a business enterprise at a specified date by listing the asset balances and the claims on such assets
-synonims: statement, report, account, budget, ledger, financial statement, credits and debits sheet;
-examples: A balance sheet is a summary of the financial balances of company.
What are assets according to the article?
-According to the article,assets are the “things that make you money”.Also,assets include current assets like:cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets.
What do you know about fixed assets?
-Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.)
What are liabilities?
-According to this article,liabilities are things that you owe.
What is equity?
-Equity are the net worth of your business;In the same time,equity is the money that you have personally invested in your business and the retained earnings from your business.
What are the three basic financial statements that you need to understand to run your business?
-There are 3 basic financial statements: Balance Sheet;Income Statement;Cash flow statement;
What is an Income Statement?
-It is a snapshot of your business activity at a current point in time.
What is the cash flow statement?
-A statement which shows where your cash position is. It is just like balancing your check book.
-GAAP - a collection of rules and procedures and conventions that define accepted accounting practice; includes broad guidelines as well as detailed procedures
ReplyDeleteSynonyms: generally accepted accounting principles
Example: To report a financial statement some companies use GAAP.
-To apprise – to estimate or calculate the value of an asset, such as a house or a building
Synonyms: assess, evaluate, valuate, value, measure
Example: We plan to sell some of unused land near our factory, so I’ve made arrangements to get it appraised.
-Gather - o cause to come together
Synonyms: pull together, collect, garner
Example: Boss gathered his employees and explained them about the work activity.
-Balance sheet - a statement of a business or institution that lists the assets, debts, and owners' investment as of a specified date.
Synonyms: statement, report, account, budget, ledger, financial statement
Example: Balance sheet is an very important document in accounting because there is evidence of firm’s budget.
-Prodigal - a recklessly extravagant consumer
Synonyms: squanderer, profligate
Example: There are few people who are prodigal with money.
-Assertion - a declaration that is made emphatically (as if no supporting evidence were necessary)
Synonyms: asseveration, averment
Example: From this assertion we can say tjat this girl isn’t guilty.
-Liaison - a channel for communication between groups;
Synonyms: inter-group communication, contact, link
Example: He provided a liaison with the guerrillas.
-Makeshift - something contrived to meet an urgent need or emergency
Synonyms: make-do, stopgap
Example: some business people do makeshifts in order to solve some problems.
-Ledger - a record in which commercial accounts are recorded;
Synonyms: account book, book of account, ledger, book
Example: All transactions of a firm are written in ledger.
-Liability - an obligation to pay money to another part
Synonyms: financial obligation, indebtedness
Example: If a company have a liability to another one, this is reported on balance sheet.
What are assets according to the article?
According to the article, assets are things that make you money. Assets include current assets like: cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets.
What do you know about fixed assets?
Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.)
What are liabilities?
Liabilities are: the bills that you owe, any loans and credit cards for your business.
What is equity?
Equity is the money that you have personally invested in your business and the retained earnings from your business.
What are the three basic financial statements that you need to understand to run your business?
First basic financial statement is that you should open a separate checking account just for your business, and keep all business finances separate from your personal finances. The second financial form is the Income Statement. And the third statement is cash flow statement which you should prepare on regular basis at least weekly.
What is an Income Statement?
An Income Statement is a snapshot of your business activity at a current point in time.
What is the cash flow statement?
Cash flow statement is a financial form that you should prepare in regular basis and there you can see where your cash position is.
1)To accrue
ReplyDeleteDefinition: To come to one as a gain, addition, or increment
Synonims: Redound,Increase
Example: There is an interest rate accruing in my savings account.
2)Receipts
Definition: A written acknowledgement of having received a specified amount of money, goods, etc; a proof of payments
Synonims: Acknowledgement
Example: They denied receipt of the shipment.
3)Assets
Definition: The total property, money etc of a person, company; Things of value owned by a business used for producing goods or pay liabilities
Synonims: Resource,benefit,goods
Example: Historical accounting records assets at their original purchase price, minus accumulated depreciation charges.
4)Auditor
Definition: An accountant who reviews the accounting procedures of a company
Synonims: Inspector, supervisor, investigator
Example: The auditor has the role of an inspector who reevaluates the accounts of a company.
5)Overhead
Definition: A cost that does not vary with the level of production or sales,which includes taxes, debts, interest and mortgage liabilities that will have to be paid by a company to smbd else
Synonims: Expenses, outgoings, running costs
Example: The Income Statement shows the total amount of overheads and expenditures.
6)Write-off
Definition: A cancellation of an item in account books (because it no longer has any value)
Synonim: Cancel, depreciate, strike down
Example: The overheads have been written-off because of the tax reduction.
7)Markup
Definition: The difference between what a business pays for an item wholesale and what the business sells it for retail; An amount added to a cost price in calculating a selling price, especially an amount that takes into account overhead and profit; A raise in the price of an item for sale.
Synonim: raise, increase
Example: Some of the assets were markedup and now they can be sold at a higer price.
8)Equity
Definition: The difference between the market value of a property and the claims held against it; the ownership interest of shareholders in a corporation.
Synonim: Value, interest
Example: The equity of the shareholders of a company represent their net worth.
What are assets according to the article?
According to the article,”assets” mean things that make smbd money.
* What do you know about fixed assets?
Fixed assets are the tangible items that smbd purchases for his business.
* What are liabilities?
Liabilities are the things that smbd owes.
* What is equity?
Equity is the net worth of smbd’s business;the money that smbd has invested in his business.
* What are the three basic financial statements that you need to understand to run your business?
The three basic financial statements are:
a)Balance Sheet
b)Income Statement
c)Cash Flow Statement
* What is an Income Statement?
An Income Statement is a snapshop of smbd’s business activity at a current point in time. It is a document showing credits and debits
What is the cash flow statement?
Cash Flow Statement is a form that shows where the cash position of smbd is. It can be expressed in the following formula: Cash + Sources of Funds - Uses of Funds = Ending Cash.
1)Word:Accounts receivable
ReplyDeleteDefinition: creditor's accounts of money owed to him; normally arise from the sale of products or services.
Synonyms: assets
Example: Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying
2)Word: Balance sheet
Definition: A statement of a business or institution that lists the assets, debts, and owners' investment as of a specified date.
Synonyms: record
Example: I don't understand these things much, but it appears that he had juggled with accounts, cooked balance sheets, had gathered in deposits months after he ought to have known himself to be hopelessly insolvent, and done enough of other things, highly reprehensible in the eyes of the law, to earn for himself seven years' penal servitude.
3)Word: To accrue
Definition: To increase, accumulate, or come about as a result of growth.
Synonyms:redound - contribute; "Everything redounded to his glory"
increase - become bigger or greater in amount; "The amount of work increased"
Example: In short, not to keep the reader in long suspense, just at the very instant when his heart was exulting in meditations on the happiness which would accrue to him by Mr. Allworthy's death, he himself--died of an apoplexy.
4)Word: Auditor
Definition: a person qualified to audit accounts;
Synonims: attender, hearer, listener;
Example: The main job of the auditor is verification of a company's financial records.
5) Word: Form
Definition: a printed document with spaces in which to write;
Synonyms: blank space, space, place - a blank area;
Example: "write your name in the space provided"
6) Word: Receipt
Definition:mark or stamp as paid;
Synonyms: check off, tick off, mark off, tick, check, mark
Example: "Please check each name on the list"; "tick off the items"; "mark off the units"
7)Word: Duty
Definition: An act or a course of action that is required of one by position, social custom, law, or religion:.
Synonyms: obligation, responsibility
Example: Do your duty to your country
8)Word: Assertion
Definition a declaration that is made emphatically (as if no supporting evidence were necessary)
Synonyms: declaration
Example: For every assertion must, as is admitted, be either true or false, whereas expressions which are not in any way composite such as 'man', 'white', 'runs', 'wins', cannot be either true or false.
9)Word: Fixture
Definition: the act of putting something in working order again
Synonyms: fixing, repair, mend, mending, reparation, fix
Example: Yet this incessant movement and progression which all things partake could never become sensible to us but by contrast to some principle of fixture or stability in the soul.
10)Word: Liaison
Definition: a channel for communication between groups;
Synonyms: inter-group communication, contact, link
Example: However natural the liaison of a young man, like Athanase, with a handsome girl, like Suzanne, for instance, might seem in a capital, it alarms provincial parents, and destroys the hopes of marriage of a poor young man when possibly the fortune of a rich one might cause such an unfortunate antecedent to be overlooked.
Victoria Morari, FB-29G
THE ANSWERS TO THE QUESTIONS, REGARDING THE ARTICLE:
ReplyDelete* What are assets according to the article?
Things that make you money. Assets include current assets like: cash in bank, savings, inventory, prepaid expenses (like insurance), accounts receivable (money owed to you) and fixed assets.
* What do you know about fixed assets?
Fixed assets are the more expensive, usually tangible items that you purchase for your business (like computers, desks, equipment, etc.)
* What are liabilities?
Things that you owe, the bills that you owe, any loans and credit cards for your business
* What is equity?
The net worth of your business, that you have personally invested in your business and the retained earnings from your business
* What are the three basic financial statements that you need to understand to run your business?
Balance Sheet. It is a comparison of your assets (things that make you money) on the left, and liabilities (things that you owe) and equity (the net worth of your business).
Income Statement. It is a snapshot of your business activity at a current point in time.
Sales. Cost of Goods Sold (what the supplies or products you sold cost you to purchase or manufacture)
Direct Selling Expenses (related just to the sale of your product or service)
Gross Profit (Sales - Cost of Goods Sold - Direct Selling Expenses = Gross Profit)
* What is an Income Statement?
Income Statement. It is a snapshot of your business activity at a current point in time.
* What is the cash flow statement?
It is just like balancing your check book. Beginning Cash + Sources of Funds (like sales and collection of accounts receivable) - Uses of Funds (expenses paid for, assets purchased, and payment of accounts payable) = Ending Cash.
Victoria Morari, FB-29G