Revenue, The total amount of money a business earns from its normal operations — usually from selling goods or providing services, Cost of sales, also known as Cost of Goods Sold (COGS) — refers to the direct costs incurred in producing or purchasing the goods and services that a company sells during a specific period., Gross profit, The amount of money a business earns after subtracting the cost of sales (or cost of goods sold) from its revenue., Expenses, The costs a business incurs in its day-to-day operations to generate revenue and keep the business running., Net profit, The final profit a business earns after subtracting all costs and expenses from its total revenue., Income statement, also called a Profit and Loss (P&L) Statement — is a financial report that shows a company’s financial performance over a specific period (e.g., a month, quarter, or year)., Statement of financial position, commonly called a Balance Sheet — is a financial report that shows a company’s financial position at a specific point in time., Fixed (non-current) assets, Long-term tangible assets that a business owns and uses in its operations to generate income, but are not intended for immediate sale, Current assets, Short-term assets that a business expects to convert into cash, sell, or use up within one year, Depreciation, The decrease in an asset's value over time due to wear and tear or obsolescence, Current liabilities, Short-term obligations a business must settle within one year (or within its normal operating cycle, if longer)., Long term liabilities, Obligations a business is required to pay after more than one year (or beyond its normal operating cycle)., Net assets, Represent the total assets of a company minus its total liabilities., Equity, Represents the owners’ share of the business, Working capital, Represents the difference between a company’s current assets and current liabilities — essentially, the resources available to meet short-term obligations..

Finance terms

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