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Financial Management. Introduction to Business Lecture 45. Income Statement. A statement which tells income or loss. It is also called profit and loss account. Revenue Vs. Profit. Revenue is income. Profit is obtained after deducting expenses from revenue. Trading Concern.
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Financial Management Introduction to Business Lecture 45
Income Statement • A statement which tells income or loss. • It is also called profit and loss account.
Revenue Vs. Profit • Revenue is income. • Profit is obtained after deducting expenses from revenue.
Trading Concern • An organization which buys goods for reselling.
Finance • Thinking and considering for long term investments. • Generating revenues to pay back these investments. • To perform day to day activities of an organization.
Ratio Analysis • Ratios tell us relationship among financial figures. • These can be: • Relationship between current assets and current liabilities.
Budgeting • A plan or an estimate for future expenses and revenues. • It will be prepared before the start of the business.