Income statement accounts

Revenue and expense accounts + definitions

Service Revenue

Represents money earned by performing services for customers. Revenue

Sales Revenue

Represents money earned from selling products to customers. Revenue (contra)

Sales Discounts

Represents reductions in sales price offered to customers for early payment or promotions. Revenue (contra)

Sales Returns

Represents refunds or credits issued when customers return products. Revenue (Contra)

Sales Allowances

Represents partial refunds or discounts given when goods are defective but not returned. Revenue (contra)

Interest Revenue

Represents income earned from lending money or investments that pay interest. Revenue

Dividend Revenue

Represents income earned from owning shares in another company that pays dividends. Revenue

Equity Income

Represents a company's share of profits from investments in other companies accounted for under the equity method. Revenue

Gain

Represents profit from selling assets or other transactions outside normal operations. Revenue

Unrealized Holding Gain—Net Income

Represents an increase in the value of investments that has not yet been sold but must be reported in income. Revenue

Advertising Expense

Represents money spent to promote products or services. Expense

Amortization Expense

Represents the allocation of the cost of intangible assets over their useful life. Expense

Bad Debt Expense

Represents estimated uncollectible amounts from customers who will not pay. Expense

Cost of Goods Sold (COGS)

Represents the direct costs of producing or purchasing the goods sold. Expense

Delivery Expense

Represents costs of transporting goods to customers. Expense

Depreciation Expense

Represents the allocation of the cost of long-term assets like buildings or equipment. Expense

Entertainment Expense

Represents costs of meals, events, or client hospitality. Expense

Income Tax Expense

Represents federal, state, or local taxes owed on company income. Expense

Insurance Expense

Represents premiums paid for insurance coverage. Expense

Interest Expense

Represents the interest cost of borrowing money. Expense

Legal Fees Expense

Represents costs of attorneys or legal services. Expense

Payroll Tax Expense

Represents employer taxes related to employee wages (like Social Security and Medicare). Expense

Postage Expense

Represents costs of mailing documents or products. Expense

Property Tax Expense

Represents taxes assessed by local governments on property owned. Expense

Rent Expense

Represents costs of leasing property, equipment, or office space. Expense

Repairs and Maintenance Expense

Represents costs of maintaining and repairing company assets. Expense

Research and Development Expense

Represents costs of creating new products or processes. Expense

Salaries Expense

Represents wages and salaries paid to employees. Expense

Service Fee Expense

Represents costs of professional services (e.g., consulting, accounting). Expense

Supplies Expense

Represents costs of office or operating supplies used during the period. Expense

Utilities Expense

Represents costs for electricity, water, gas, and other utilities. Expense

Warranty Expense

Represents estimated costs of future warranty claims for products sold. Expense

Loss

Represents financial decreases from selling assets below value or other unusual transactions. Expense

Unrealized Holding Loss—Net Income

Represents a decrease in investment values not yet sold but reported in income. Expense