BNAD 100 Lecture Notes - Lecture 1: Profit Margin, Financial Statement, Accrual

• School: University of Arizona
• Department: Business Administration
• Course: BNAD 100
• Professor: Jeff Welter

Document Summary

A company"s financial statements keep track of the company"s and its financial position. Revenue - income generated from sale of goods or services associated with the main operations of a company before expenses are deduced. Expenses - money spent in an organization"s effort to generate revenue. Net income or profit - what is left over - can be used for various areas. Cost of goods sold (cogs) - the cost of physical goods the company sold. Gross profit - the profit earned sales of a product before other expenses (includes cost of goods) Gross profit margin - the percentage of revenue the company retains after subtracting the cost of goods sold (revenue - cogs / revenue = gross profit margin) Summarizes the company"s" assets, liabilities, and quality at a specific point in time. Asset - something that the company has purchased or acquired and that the money value, what the company owns.