CH1-2. Statement of Comprehensive Income: Revenue, Expenses, and Net Earnings Flashcards
Remember which is which
1
Q
Revenues
A
Cash and promises recieved for from delivery of goods and services
2 parts
2
Q
Sales of Goods
A
Revenue
Revenues earned from sale of products
3
Q
Other Revenues
A
Revenue
Revenue earned from services rendered, interest on customer recievables, and others.
4
Q
Expenses
A
Resources ued to earn the period’s revenues
4 parts
5
Q
Cost of Producing Revenue (Cost of Sales)
A
Expenses
Cost of products and services sold to customers
6
Q
Selling, General, and Administrative Expenses
A
Expenses
Other operating expenses (Marketing, utilities, delivery costs, etc)
7
Q
Interest Expense
A
Expense
Interest and other costs incurred with borrowing of funds
8
Q
Income Tax Expense
A
Expense
Income taxes related to the period’s pretax earnings
9
Q
Net Earnings
A
Net Earnings = Revenue - Expenses
