It includes cost of the materials used, cost of the service rendered, interest expense, depreciation, bad debts expenses, etc.
Expenses = Signify the amount of cost to produce an item sold. However, beware for it doesn't necessarily mean the business is profitable. Take note that when a business have a high amount of revenue, it indicates good marketing and sales process that resulted to high sales volume of product or service. It may come from the service fees or sales price of goods sold, depending on the type of business being run. Revenue = This account will show you the amount of sales derived in a given period. government agency responsible for regulating the securities industry, which includes stocks and options exchanges Go to source Securities and Exchange Commission Independent U.S. 
Basically, it comprises of the following: X Trustworthy Source U.S. Review the income statement report to understand the overall performance, profit or loss, of a business in a given period. The opposite means it is in trouble of closing down its operation. When you see a high equity balance, it can be a good indicator that the business is able to sustain and grow. In the equity account, you will be able to see the real value of a business in terms of ownership. When you look at the equity account, check the number of stocks, common and preferred, that were issued. It is the major source of money to support and sustain a business operation. Equity = Equity meant to be the capital of a business.Most often, depending on a given situation, when you see that a business have high amount of liability, it may be a sign of trouble and inability to sustain its operation. Liability account will enable you to look at the balances of the accounts payables, bills payables, notes payables and all other payables.
Obtaining loans is one of the ways to generate capital to support a business operation.
Liability = Take note that liability consists all the outstanding loan obligations of a business. By doing so, you can determine if a business is able to sustain and grow operation or it will close down. You look at how well it manages its asset by checking the financial value allocated to cash, receivables, short-term and long-term investments, inventory, fixed assets, furniture and fixtures, land and building. Asset = Remember that asset adds worth to a business. Basic Equation of a Balance Sheet: Asset = Liability + Equity. To be told we don’t offer payment holidays and I was made aware of this I was not!!!! I had 2 emails spoke to them 3 times on the phone never once was I told I would incur arrears! Now after numerous emails which they don’t read they just copy and paste the same message! So at a time of immense personal grief and loss they just don’t give a toss their treatment of me has been nothing short of a disgrace I have made a complaint but they won’t even investigate bunch of cowboys.Use the balance sheet to review the financial condition of a business, as of a given period, by looking at how it manages its Asset, Liabilities and Equity. Which I agreed to the fail to this up properly I get an arrears letter than month phong then apologise now 2 months down the line another arrears letter. To be told find we can do 3 payments at £1 a month. After my mother had just passed away I asked for a 3 month payment holiday.
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