It is calculated as sales less the cost of goods sold.

These are the tangible assets of a business that will not be converted to cash within a year during the normal course of operation. 

The Retained Earnings account tracks any of your company’s profits that are reinvested in the business and are not paid out to the owners 

The activity or occupation of keeping records of the financial affairs of a business. 

This is the gross revenue generated from the sale of clothing less returns (cancellations) and allowances (reduction in price for discounts taken by customers). 

It is important in a business for it is the only way to inform the entrepreneur how the business is doing.

The number is computed by adding other income (or subtracting if other expenses exceed other income) to the operating profit.

This account has a nice ring to it. Basically, it tracks the amount each owner puts into the business.

If your company sells products or services and doesn’t collect payment immediately you have “receivables” and you must track. 

It provides a snapshot of the business's assets, liabilities and owner's equity for a given time.