-Capital:

+ Capital is a monetary fund regardless of the source of assets the business owns, be it cash or cash
equivalents such as stocks or facilities that the business owns. The objective of the monetary fund is
to serve the business activities of the enterprise.

Gồm:

- Working capital: The value of assets after subtracting the value of liabilities
- Enquity capital: Gained by issuing stock in the company in exchange for a monetary
investment
- Dept capital: Loans that companies eventually must repay
- Trading capital: Used by companies to buy and sell various assets

Vai trò:

- Capital is deciding the existence and development of the business, improving the
competitiveness of the enterprise against competitors.
- Capital is the basis for establishing the legal status of an enterprise, ensuring the
production and business of the enterprise according to the set objectives.
- Capital is an important basis to ensure the existence of the legal entity before the law
throughout the process of existence and development.
- Capital is an economic potential, an important factor in the decision to expand the
scope of business activities. To be able to conduct extended reproduction, after a
business cycle, capital must be profitable, that is, it must be profitable to ensure
business operations of the enterprise.
- Capital is the basis for enterprises to continue to invest in production. business,
penetrate the potential market
Cách tính working capital:

Working capital = current assets - current liabilities

Assets:

- Định nghĩa: An asset is any resource of value, tangible or intangible, that is owned
or controlled by an individual, a company or a government with the expectation that it
will yield an economic benefit.

- For accounting purposes, assets are defined as probable future

economic benefits obtained or controlled by a particular entity as the
result of past transactions or events. 

- For individuals, assets include checking and savings accounts,

retirement accounts, equity in a home or other property, vehicles, and
any equity a person has in a business, private or otherwise. 
 - Phân loại: gồm current assets và non-current assets:

Current assets:

Current assets are used to generate value within the fiscal year. They include any
assets that your company:

 expects to realize, sell or consume in its normal operating cycle

 expects to realize within 12 months of the reporting date
 holds for trading
They also include available cash.

All other assets are recorded as long-term assets.

Current assets generally include the following:

 Available cash
 Investments
 Accounts receivable and other receivables
 Inventory
 Prepaid expenses
Investments recorded under current assets are those that can be realized quickly,
such as marketable securities, treasury bills, certificates of deposit and demand
loans.

Non current assets:

Long-term assets are those a business can expect to use, replace and/or convert to
cash beyond the normal operating cycle of at least 12 months.

Long-term assets are often used for years. This distinguishes them from current
assets, which companies typically spend within 12 months.

Because long-term assets are harder to convert to cash than current assets, they are
often referred to as illiquid assets.

Companies periodically refurbish or replace long-term assets by taking on debt

and/or raising equity capital. Matching long-term debt to the expected lifetime of an
asset is a common business practice.

Assets in the balance sheet are listed from most to least liquid. Cash is recorded at
the top of the balance sheet because it is the most liquid asset. It is followed by
accounts receivable, which settle current liabilities in the normal course of business.

Current assets are recorded separately from long-term assets because they are

used to calculate a company’s working capital.

Long-term assets appear on the balance sheet after current assets. Because they
are purchased for long-term use, their value decreases over time because of wear
and tear. This is recorded as a depreciation on the income statement and negatively
affects net income.

A similar expense would be recorded as a depletion expense for natural resources.

Assets = Liabilities + Equity

P&L:
Định nghĩa:
- The profit and loss statement (P&L), also referred to as the income
statement, summarizes the revenues, costs, and expenses incurred
during a specified period, usually a quarter or fiscal year. Company
managers and investors use P&L statements to analyze the financial
health of a company.
o The profit and loss (P&L) statement is a financial statement
that summarizes the revenues, costs, and expenses incurred
during a specified period.
o The P&L statement is one of three financial statements that
every public company issues quarterly and annually, along
with the balance sheet and the cash flow statement.
o When used together, the P&L statement, balance sheet, and
cash flow statement provide an in-depth look at a company’s
overall financial performance.
o Statements are prepared using the cash method or accrual
method of accounting.
o It is important to compare P&L statements from different
accounting periods, as any changes over time become more
meaningful than the numbers themselves.

Types:

- Cash method: Also referred to as the cash accounting technique,

the cash method is only applied when cash enters and exits a
business. frequently used by microbusinesses and those who desire
to take control of their own finances. Because the calculator only
keeps track of money received or spent. Every time cash is used to
settle a debt or pay a bill, the transaction is recorded as revenue or
payable.
- The accrual accounting method: logging the money the company
makes. This implies that companies employ this technique to
account for the money they anticipate receiving in the future. Even
though the business hasn't made any payments for expenses, debts
are still recorded.
How p&l work:

- P&L is one of there most common and popular financial statements in business plan,
along with balance sheet and the cash flow statement.
- P&L shows how much profit or loss was generated by a business.
- P&L show changes in account in period of time as the cash flow statement.
- It is important to compare the income statement with the cash flow statement since,
under the accrual method of accounting, a company can log revenues and expenses
before cash changes hands.
How p&l important to business group:

- Profit and loss statements are carefully reviewed by market analysts, accountants
and investors. The purpose of the P&L report is to show a company's revenue and
expenses over a specified period of time, usually a financial year.
- Profit and loss statement is very important for a business, to let the business know its
financial ability to carry out business activities, and to devise a suitable business
strategy.