Income Statement: Shows how much money your business made (revenue), spent (expenses), and whether it ended up with a profit or loss. Balance Sheet: A snapshot of your business's f... Income Statement: Shows how much money your business made (revenue), spent (expenses), and whether it ended up with a profit or loss. Balance Sheet: A snapshot of your business's financial health, showing what it owns (assets), what it owes (liabilities), and the value left for the owners (equity). Cash Flow Statement: Shows how cash moves in and out of your business—whether from operating, investing, or borrowing activities. Revenue: The money your business earns from selling products or services. Expenses: The costs your business pays to operate, like rent, salaries, and raw materials. Net Income (Profit): What you’re left with after subtracting all your expenses from your revenue. Assets: Things your business owns that are valuable, like cash, equipment, or buildings. Liabilities: The money your business owes to others, like loans or bills. Equity: The value of your business after subtracting what it owes from what it owns. It’s like your ownership share. Operating Activities: Cash coming in and going out from day-to-day business activities (e.g., selling products, paying employees). Investing Activities: Cash spent or earned from buying or selling assets like property, equipment, or investments. Financing Activities: Cash related to borrowing money or paying off debts, or receiving or giving money to owners/shareholders. Gross Profit: Revenue minus the cost of making or buying the products you sell. It shows if your core business is profitable. Net Loss: When your expenses are greater than your revenue, leading to a negative result (opposite of profit). Cost of Goods Sold (COGS): The direct costs of producing your product, like materials and labor. Accounts Receivable: Money customers owe you for things they've bought but haven’t paid for yet. Accounts Payable: Money you owe to others for things you've bought but haven’t paid for yet. Liquidity: How quickly and easily you can turn your assets into cash to pay bills or handle unexpected expenses. Depreciation: The gradual decrease in value of a business asset, like equipment or machinery, over time. Capital: The money or assets your business has to use for operations or investment. Profit Margin: The percentage of revenue that turns into profit after all expenses are paid. Break-Even Point: The point where your revenue equals your costs, meaning you neither make a profit nor a loss. Operating Income: Profit made from the regular activities of the business, before accounting for things like taxes or interest. Dividends: Payments made to company owners or shareholders from the company’s profits. Financial Ratios: Key numbers that help you assess your business’s financial health, such as how much profit you're making compared to how much you’re spending. Read more