Financial statements are official reports that summarize a company’s financial activities and performance, including the balance sheets, income statements, and cash…
A Balance Sheet is what your business owns (assets), owes (liabilities), and the owner’s stake (equity) at a specific point in…
An income statement, also called a profit and loss statement, shows a company’s revenue, expenses, and profit over some time. If…
Total revenue refers to the total income a business generates from selling its goods or services before any expenses are deducted….
If you’ve ever wondered how much you can safely withdraw from your retirement savings each year without running out of money,…
How to Calculate Profit Margin Profit margin measures the percentage of revenue that remains as profit after expenses are deducted. Profit…
Marginal cost refers to the additional cost incurred when producing one more unit. Understanding it helps you set prices that maximize…
The 3x rent rule means your gross monthly income should be at least three times your monthly rent. For example, if…
Understanding the difference between revenue and profit is crucial whether you’re running a business, investing in stocks, or managing your finances….