Definition:
- The day-to-day process of purchasing ingredients from suppliers, manufacturing output products, delivering them to customers, collecting cash from customers, and paying suppliers.
- Revenue vs Gain:
- increase in asset or settlements from liabilities
- revenue: from major or central ongoing operations
- intended, main focus on the business
- gain: from peripheral transactions
- not intended, unexpected gain
- Expenses vs Losses:
- losses are not intended, not spent for the purpose of making revenue
- Prepaid expenses is an asset