The document discusses potential energy (P.E.) and kinetic energy (K.E.). P.E. is the energy an object possesses due to its position or height, and is calculated as P.E. = mgh, where m is mass, g is gravitational acceleration, and h is height. K.E. is the energy an object possesses due to its motion, and is calculated as K.E. = 1/2mv^2, where m is mass and v is velocity. Examples are provided to demonstrate calculating P.E. and K.E. for different objects. The document also states that energy cannot be created or destroyed, only converted from one form to another.