![]() ![]() In other words, the investing activities section shows how much money you spent on longer-term assets such as property, plant & equipment (PP&E), or other companies.įor example, if a company buys new computers for its employees, that would be recorded as an investment expense. Making any other investments in your company that aren't part of your everyday operations.Selling off assets like equipment or buildings.Purchasing fixed assets like equipment or buildings.You can break down gross profit into two categories: direct costs and indirect costs. Gross profit - The difference between revenue and cost of revenue is gross profit, which represents your margin (or profit) on each sale.It includes the costs that go into producing your products, such as raw materials and labour, along with any other direct costs associated with creating your product or service Cost of revenue - This is the cost of the goods sold or services rendered.Revenue from customers - These are sales of products or services to consumers, businesses, or other organisations.The most common categories of operating activities include: And if you purchase products or services for your business, this would be called expenses. ![]() ![]() For example, if you sell products or services, this would be called revenue (or sales). Operating activities include all the regular day-to-day business transactions you perform. ![]()
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