Recent Articles

Revenue

Sometimes referred to as sales. It comprises, sales, customer returns or allowances, adjustments to revenues/sales, and other revenue related items to generate the total revenue/receipts for the small business.

Bookkeeping – Various Terms (Lesson 26)

01/24/2017

In the previous 25 lessons I covered a lot of different terms and this lesson is merely a summary of the various terms a bookkeeper encounters. (Lesson 1) Account types – There are six major sets of accounts; three (assets, liabilities, [...]

Marginal Revenue in Business

02/03/2015

The scholarly definition and reality are two different perspectives.  The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales.  It is literally taken right down to the micro [...]

Cost of Sales – Various Formats

01/27/2015

Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’.  Basically, most business entrepreneurs and even accountants don’t realize that it has several different names and [...]

Chart of Accounts – Layout

11/27/2013

The goal of accounting is to record the economic activity of the business.  This is achieved by entering each economic transaction into a set of books.  The books are formatted to reflect the balance sheet and income statement items.  The chart [...]

Internal Revenue Service – Definition of Revenue

08/22/2013

The Sixteenth Amendment to the Constitution of the United States gives authority to Congress to tax income.  The Internal Revenue Service defines revenue via a term ‘Gross Income’.  In Chapter 26 of the Federal Code (Chapter 26 is the Internal [...]

Revenue and Sales – What is the Difference?

06/03/2013

Sales are a component of revenue.  Revenue encompasses several sources of income including sales.  Other sources of revenue include interest, trust monies, royalties, and fees.  In effect, revenue includes all sources of income, realized and [...]
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