DSST Things to know_Intro to Business

Other assets intangible trademarks patents and

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Other assets – intangible (trademarks, patents, and goodwill) Income Statement – o Revenues o Cost of goods sold o Gross profit o Operating expenses o Operating income o Net income Cash Flow Statement – include cash IN debt and equity financing as well as OUT in the form of interest and payment dividend payments and repayments of principle borrowed o Cash from operations o Cash from investments o Cash from financing GAAP- Generally acceptable accounting principles (accountants must follow standards) Assets = Liabilities + Owners Equity Equity is what the business is worth if the owner chooses to sell Net Worth = Assets – Liabilities (example of liabilities: payroll, vacation hours on the books, accounts payable, etc.) (examples of assets: equipment, capital (money) accounts receivable, inventory, etc.) Production Utility or value, for customers – Form (what a customer needs) Time (when they need it) Place (where they need it)
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