WGU D102 FINANCIAL ACCOUNTING OA
REVIEW MODULE 2 TEST
Net Income or Net Loss
Revenues - Expenses = ???
revenue
is the dollar amount of goods and services a company provides in its business
operations. The increase in net assets from performing what a company does on
a regular and ongoing basis
Selling inventory
Providing a service
Interest
Franchise revenue
Subscriptions
What are some examples of different types of revenues?
sales revenue
Most common type of revenue and represents the total selling price of goods
sold during the period.
Service fees
are the primary source of revenue for law firms, plumbers, investment banks,
CPAs, and all other companies that market services instead of products.
Fee revenue differs from sales revenue in that fees are earned in exchange for
services while sales revenue is earned in exchange for products.
What is the difference between fee revenue and sales revenue?
, interest revenue
For all firms except banks, this is an insignificant percentage of total revenue
because the interest is received on temporary investments of surplus cash and
does not relate to core business operations.
licensing revenue
Professional sports teams record this category of revenue for fees received by
allowing apparel companies to place the teams' names and logos on clothing.
Proceeds from a loan
Receiving cash from a customer who had bought previously on account
(revenue was earned from initial sales transaction)
What is not revenue?
expenses
is the amount of resources used up in generating the revenue reported.
cost of goods sold
When a business sells products to customers, the cost of the products sold is
identified as an expense called?
Gross Profit
will be posted on a company's income statement and can be calculated by
subtracting the cost of goods sold (COGS) from revenue (sales).
Gross Profit Percentage
The margin (as a percentage) of profit on a product or service after the total cost
of production is attributed to the revenue earned.
REVIEW MODULE 2 TEST
Net Income or Net Loss
Revenues - Expenses = ???
revenue
is the dollar amount of goods and services a company provides in its business
operations. The increase in net assets from performing what a company does on
a regular and ongoing basis
Selling inventory
Providing a service
Interest
Franchise revenue
Subscriptions
What are some examples of different types of revenues?
sales revenue
Most common type of revenue and represents the total selling price of goods
sold during the period.
Service fees
are the primary source of revenue for law firms, plumbers, investment banks,
CPAs, and all other companies that market services instead of products.
Fee revenue differs from sales revenue in that fees are earned in exchange for
services while sales revenue is earned in exchange for products.
What is the difference between fee revenue and sales revenue?
, interest revenue
For all firms except banks, this is an insignificant percentage of total revenue
because the interest is received on temporary investments of surplus cash and
does not relate to core business operations.
licensing revenue
Professional sports teams record this category of revenue for fees received by
allowing apparel companies to place the teams' names and logos on clothing.
Proceeds from a loan
Receiving cash from a customer who had bought previously on account
(revenue was earned from initial sales transaction)
What is not revenue?
expenses
is the amount of resources used up in generating the revenue reported.
cost of goods sold
When a business sells products to customers, the cost of the products sold is
identified as an expense called?
Gross Profit
will be posted on a company's income statement and can be calculated by
subtracting the cost of goods sold (COGS) from revenue (sales).
Gross Profit Percentage
The margin (as a percentage) of profit on a product or service after the total cost
of production is attributed to the revenue earned.
