Lipids are a group of naturally occurring compounds that are insoluble in water but soluble in organic solvents. They are classified as simple lipids like oils and fats, compound lipids like phospholipids and sphingolipids, waxes, and derived lipids like fatty acids. Simple lipids are triglycerides composed of fatty acids and glycerol. Fatty acids can be saturated or unsaturated. Saturated fatty acids have only single bonds between carbon atoms while unsaturated fatty acids contain one or more double bonds. Cholesterol is found in animal tissues and serves as a precursor for bile acids, steroid hormones, and vitamin D.