This is where you track any raw materials or finished goods that you buy for your business. 

Some of the most common ___________ include cash value of life insurance, long-term investment property and compensation due from employees.

It is computed by subtracting the operating expenses from the gross profit. 

A net figure is computed by subtracting other expenses from other income.

A chart that breaks down how much your business expects to sell in various categories by month (for the next year) and by year (for the following two to four years). 

It is usually included in operating expenses and/or cost of goods sold, but it is worthy of special mention due to its unusual nature. 

These are expenses that stay the same when your sales increase such as rent, insurance, licensee fees, utilities etc.

The following are the example of variable cost except.

If you’ve borrowed money to buy equipment, vehicles, furniture or other items for your business, this is the account that tracks what’s owed and what’s due.

It is designed to convert the accrual basis of accounting used to prepare the income statement and balance sheet back to a cash basis.