Entrepreneurship
A summary of a company’s profit/loss over a specific time period. It shows the income earned and expenses paid for a business in the period being recorded.
Overall, it shows how well the business is doing by showing: ◦ Sales made ◦ Returns ◦ Costs ◦ Unexpected expenses
Revenue ◦ The amount of money that is brought into a company by its business activities. ◦ Example: money paid by customers Expenses ◦ The outflow of money. It is the costs that a business incurs through its operations to earn revenue. ◦ Example: Employee wages, electricity, etc. Total Revenue – Total Expenses = Net Income
Cost of Goods Sold ◦ The direct costs attributed to the production of the goods sold by a company. Revenue - Costs = Gross Income
Net Income ◦ A company’s total earnings. Net Loss ◦ When expenses are greater then revenue Net Income Video Net Income Video
Revenue - Cost of goods sold =Gross Income - Expenses =Net Income or Net Loss
Columns – Vertical (Hint: Colosseum) Rows – Horizontal (Hint: Road) Cell - The intersection of a column and row