فصل Finance for Non-Financial Professionals ، بخش 1 : Foundations of Finance and Accounting
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People in the business world whose jobs entail something other than finance and accounting. So in this module we're gonna build a general overview of the basics of accounting and finance. And this is very important and this actually gets its own module, because costs are an intricate part of our financial strategy.
But we're talking about two completely different things as I'm gonna show you. But over the years as I've considered that and I've pondered it I start to realize wow that's really true. Now, if you go Google a company and you look at their financial statements, you look at their balance sheet, a lot of times today that's not the way it's done.
And the next section, when we talk about costing, you'll see why it's important that we classify them as fixed and variable. The finance, the financial equation, income equals revenue minus cost. And finance is, is using what we're tracking to determine how we can get those costs reduced, how we can get that revenue increased, and how we can increase that bottom line of income, which equals revenue minus cost.
So right now you could go to any company, anywhere on Earth, assuming they have their books up to date, and just print up a balance sheet. And I'm gonna speak about this a little bit more when we talk about the, the the rules and the guidelines of accounting. In a typically traded company on the stock market, the payment of dividends is the returning of equity to the owners.
So wh, that way we're able to match the revenue and the costs, therefore the income of a business to the actual period in which it generated. So even though income might come in at one point and expenses might be paid at another, I'm gonna match these together to again show the benefit of a certain period of time or a certain series of actions in my business. We're gonna look at how we cost our product, our service, and how that fits in to finance in general, and becomes part of our financial equation.
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