Revenues and Expenses

Question	Answer
Sales or Service Revenue	Economic resources received from the sale of product and/or services to customers.
Cost of Revenues	Economic resources expended that are directly linked to a sale such as the cost of a product sold to a customer or the labor and materials used to provide a service to a customer.
Selling, General and Administrative Expenses	Economic resources expended to sell products or manage the operations such as advertising, sales commissions, rent, property taxes, utilities, insurance, supplies, administrative salary and wages.
Research and Development Expenses	Economic resources expended in developing new products or processes.
Depreciation or Amortization Expenses	Allocation of the cost of property, plant and equipment (depreciation) and intangible assets (amortization) over their useful life.
Income Taxes Expenses	Economic resources required to be expended on profits (net income) generated by a business organization.
Net Income (Loss)	Difference between revenues and expenses. Net income if revenues are greater than expenses. Net loss if expenses are greater than revenues.

Resource summary

	Created by MDcollege almost 11 years ago