Understanding Finance: A Journey Through Time

Finance is fundamentally about tracking money, a concept established as early as the 1400s by Luca Pacioli, who developed the foundational principles of accounting. These principles, including the equation assets equals liabilities plus equity, and sales minus expenses equals net profit, have remained unchanged for centuries. While the mathematical concepts of finance are straightforward, psychological barriers can complicate understanding. A strong financial position, known as KFP (known financial position), is essential for effective financial management and decision-making.