Business mechanics
Concepts
A growing library of business and accounting concepts explained simply—built as a connected system, not isolated posts.
Accounts Payable
Bills owed to suppliers after goods or services are received.
Read the concept →Accounts Receivable
Delivered sales that still need to be collected in cash.
Read the concept →Accounting Equation
Assets are financed by creditor and owner claims—liabilities plus equity.
Read the concept →Accrual Accounting
How performance is recorded when earned—not only when cash moves.
Read the concept →Cash Flow Statement
How cash moved through operating, investing, and financing.
Read the concept →Deferred Revenue
Why cash can arrive before revenue is earned.
Read the concept →Gross Margin vs Profit
Direct product economics vs what the full business keeps.
Read the concept →Liabilities
What the business owes, and why prepayments live here.
Read the concept →Profit vs Cash Flow
Performance under rules vs liquidity in the bank.
Read the concept →Retained Earnings
Cumulative profits kept in the business instead of paid out.
Read the concept →Revenue Recognition
When earned revenue meets the income statement.
Read the concept →Working Capital
Short-term assets minus short-term obligations for operations.
Read the concept →