LEONISLesson 21
How a company makes money
Revenue, costs, profit
Revenue is everything a company takes in. Costs such as wages, materials and rent are deducted. What remains is the profit.
The balance sheet in brief
The balance sheet shows what a company owns and how that is financed: with the owners' equity or with debt. A lot of debt makes a company more vulnerable when business is poor.
Test yourself: you answer the quiz questions for this lesson in the app under Learning.