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Assets = Liabilities + owner equity /* Everything that you own - what you owe others = owner equity <profit + shares of the stakeholders> */
exp + rev = net profit
= gross profit - exp
Net profit goes to the owner equity.
owner equity = net profit (current period) + retained earnings + shareholders equity (shares %)
income statement = rev - cost of goods sold = gross profit.
net profit = gross profit - expenses
cash =
capitalized asset --
You bought a car for 2000€, you then fixed it for 500€ so the final price is 2500€.
When you increase the market value of the asset that's a capitalized asset.
historical cost: price of the item when it was first bought as per rechnung + the cost of displacement.
net asset value = hist. cost - accum. depreciation
depc. expenses has some formula yearly done
market value: the current price of the item in the market.
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