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An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.

A cash sale is recorded by debiting the cash account and crediting the sales revenue. A credit sale is recorded by debiting the accounts receivable and crediting the sales revenue.

The Sales Discounts account is an example of a contra revenue account. A sales allowance is recorded as a debit to Accounts Receivable and a credit to Sales Allowances. A sales allowance is recorded as a debit to Sales Allowances and a credit to Accounts Receivable.

Accounting ratios analysis helps in the identification of the strengths and weaknesses of a business.Over time a business can assess their performance and pick up on key indicators on whether improvements or changes are necessary.

Account analysis is a process in which detailed line items in a financial transaction or statement are carefully examined for a given account, often by a trained auditor or accountant. In accounting, account analysis is quite complex and involves an in-depth understanding of both the data and the company.

Two examples of contra revenue accounts are: Sales Returns and Allowances. Sales Discounts.

Account analysis is a process in which detailed line items in a financial transaction or statement are carefully examined for a given account, often by a trained auditor or accountant. An account analysis can help identify trends or give an indication of how a particular account is performing.