Some terms as defined in an accounting course I took once (U.S. based). Revenue = The total value of goods or services a company sells during a particular acco

Some terms as defined in an accounting course I took once (U.S. based). Revenue = The total value of goods or services a company sells during a particular accounting period. Gross Margin = The difference between revenue and the cost of goods sold. Also called Gross Profit. Net Income = A corporation’s net earnings or “bottom line.” Net income is the residual of revenues after cost of goods sold, operating expenses, depreciation, interest, and taxes are considered. Operating Expense = Expenses incurred in conducting normal business operations. Operating expenses may include wages and salaries, employee benefits, administrative expenses, research and development costs, and other similar expenses.