100,000 barrels of oil from you MUST LEARN!! in six months!
Really? That sounds great, But are
you ready for the rollercoaster of oil prices? They can go up and down Vishal Goud like crazy! Assets - Current assets - Non current assets - Intangible assets
Operating expenses - Selling & Administrative
COGS (Cost of Goods Sold)
Non operating expenses
Liabilities - Current Liabilities - Contingent Liabilities - Long term Liabilities
Operating income Non operating income Gross profit Net profit Cash flow Income statement Cash flow statement Balance sheet Assets are resources owned by a business or individual that hold economic value and are expected to provide future benefits.
Current Assets are assets that are expected to
be converted into cash, sold, or used up within one year or one operating cycle
Cash Money market funds Treasury bills Accounts receivables (Money owed to the business by customers for sales made on credit.) Prepaid expenses (Payments made in advance for expenses that will be incurred in the future) Inventory Stocks Bonds Mutual funds Non-Current Assets, also known as long-term or fixed assets. These assets provide value to a company over a long period (typically beyond one year). Property, Plant, and Equipment Land Investments Natural Resources (Oil fields, mining deposits)
Intangible assets are non-physical resources that
provide significant value to a business.
GoodWiill Patents Copy rights Trade marks Franchise Agreements Costs required to run a company’s core business operations on a daily basis
Selling Expenses, these are directly related to
the selling of products or services. Advertising costs Sales promotions (Discounts, Coupons, offers) Sales commission Shipping and delivery costs
Administrative Expenses, These expenses support
the overall management of the business but are not directly tied to the production of goods or services
Salaries and Wages for employees
Office Supplies, like paper, pens, and other materials needed for daily operations. Electricity, water, heating, and cooling of the office space. Professional Fees Rent or Lease Payments COGS represents the direct costs related to the production of the goods sold by a company
Wages, salaries for production workers, assembly
workers Raw materials costs Manufacturing costs Packaging costs
Taxes Depreciation and Amortization Burden and obligations of a business to settle debts and other financial commitments.
Current liabilities are short-term financial obligations
that are due within one year or within the operating cycle of the business.
Accounts payable Loans and borrowings that need to be repaid within a year Expenses that have been incurred but not yet paid, such as wages, interest, and taxes.
Long-term liabilities are obligations that are not due to
be settled within one year or the operating cycle
Long-Term Debt Deferred Tax Liabilities Pension Obligations Lease Obligations Contingent liabilities are potential obligations that may arise in the future depending on the outcome of uncertain events.
Lawsuits Product Warranties
Income we get after cutting COGS, Operating
expenses from the total revenue. It is also known as EBIT (Earnings before income tax). Income generated from the core business operations.
Income generated from activities not directly related to the
core operations of the business.
Investment Income Rental Income Gains from Asset Sales Gross profit is the amount of money a company makes from its sales after deducting the cost of goods sold (COGS). Gross Profit = Revenue - Cost of Goods Sold (COGS)
Net income, also known as net profit or net earnings, is
the total profit of a company after all expenses, including operating expenses, interest, taxes, and non-operating costs, have been deducted from total revenue.
Cash Flow is the movement of money in and out of a
business, indicating its liquidity and operational efficiency.
Balance Sheet is a financial statement that summarizes
a company's assets, liabilities, and equity at a specific point in time.
Income Statement is a financial statement that shows a
company's revenues and expenses over a specific period, ultimately leading to net income.
Cash Flow Statement is a financial statement that
provides an overview of cash inflows and outflows from operating, investing, and financing activities.
