Important Financial Statement items

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Important financial statement items include revenue, expenses, net income, assets, liabilities, and equity.

Revenue: Represents the total income generated by a company from its normal business operations.
Expenses: Include all costs incurred by the company in order to generate revenue.
Net Income: Calculated as revenue minus expenses, it represents the company's profit or loss.
Assets: Resources owned by the company that have economic value, such as cash, inventory, and property.
Liabilities: Debts or obligations owed by the company to external parties, such as loans or accounts payable.
Equity: Represents the company's net worth, calculated as assets minus liabilities.

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