Income and Expense Statement
Money that we receive for good and services during the reporting period
Money that we spent during the period for goods and services
Income less Expenses
Income taxes you pay, or that are taken out of our paycheck
Difference between Income and Expense
Assets are the of the things we own or have and their dollar value. For example
we could have money in checking or savings.We could own a house that has some value.
The things and total amount we owe on a loan against our assets.
For example, we have a mortgage on our house or a loan against our car. We can also
owe money on a department store charge card or bank credit card.
Net worth is the difference between our assets and liabilities. If our net worth
is negative we owe more than what we have. We are technically bankrupt.