Business Finance Basics

Front

Revenue

Back

Income from sales of goods/services

Front

Profit

Back

Revenue minus expenses

Front

Assets

Back

Resources owned by a business

Front

Liabilities

Back

Debts or obligations of a business

Front

Equity

Back

Owner's interest in the business

Front

Cash Flow

Back

Movement of money in and out of a business

Front

Break-even Point

Back

No profit, no loss; total revenue equals total costs

Front

Fixed Costs

Back

Costs that do not change with output

Front

Variable Costs

Back

Costs that vary with output

Front

Gross Profit

Back

Sales revenue minus cost of goods sold