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More sales can still leave a shop with less profit

Revenue records one part of the story; the costs recognized against it tell another. Staffing, supplies, discounts, and expansion can make growth look very different when viewed through an income statement.

3–7 min

Questions you could explore

  • Which costs would need to change for higher sales to produce lower profit?
  • Why might profit and money in the bank tell different stories?

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Business

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4–5 min

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One transaction, two sides of the accounts

Buying equipment with cash or borrowed money affects the accounts differently. Assets must still balance against liabilities and equity, so one purchase changes more than the list of things a business owns.

3–5 min

One transaction, two sides of the accounts

Business3–5 minBuying equipment with cash or borrowed money affects the accounts differently. Assets must still balance against liabilities and equity, so one purchase changes more than the list of things a business owns.

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