Financial math equations

  1. Revenue – Expense = Profit,
  2. Net worth= Asset – Liability

My dear children learned while we were shopping at IKEA that:

Revenue & Expense by Elizabeth

Revenue & Expense by Elizabeth

  revenue = money coming in  expense = money going out

  profit = revenue expense

Money that mommy earns from her work is revenue

Apartment rental income is revenue

Money we spent paying for everything we use is expense

  asset = things that bring in profit

  liability= things that do not bring in profit

Can you please tell me what are the assets and what are the liabilities that you know?

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