B. Revenue

All the money coming into a company during a given period is revenue. Revenue minus the cost of sales and operating expenses, such as rent and salaries, is known as profit, earnings or net income. The part of its profit that a company pays to its shareholders is a dividend. Companies pay a proportion of their prpfits to the government as tax, to finance government spending. They also retain, or keep, some of their earnings for future use.

share capital revenue dividends

capital

company

profits

tax

debt (bonds and loans) expenses retained earnings

С. Financial statements

Companies give information about their financial situation in financial statements. The balance sheet shows the company’s assets - the things it owns; its liabilities - the money it owes; and its capital. The profit and loss account shows the company’s revenues and expenses during a particular period, such as three months or a year.