Expended third year 10,000.00 Deduct appropriation 10,000.00 ---------- To advertising inventory 000.00 Appropriation fourth year 10,000.00 Expended " " 8,000.00 ---------- To credit advertising inventory 2,000.00 Appropriation fifth year 10,000.00 Expended " " 9,000.00 ---------- To credit advertising inventory 1,000.00 Appropriation sixth year 10,000.00 Expended " " 10,000.00 ---------- To advertising inventory 000.00 Appropriation seventh year 10,000.00 Expended " " 9,000.00 ---------- To credit advertising inventory 1,000.00 Appropriation eighth year 10,000.00 Expended " " 8,000.00 ---------- To credit advertising inventory 2,000.00 Appropriation ninth year 10,000.00 Expended " " 7,000.00 ---------- To credit advertising inventory 3,000.00 Appropriation tenth year 10,000.00 Expended " " 6,000.00 ---------- To credit advertising inventory 4,000.00 ---------- ---------- $13,000.00 $13,000.00 REVENUE ACCOUNTS =53.= The term _revenue_ (synonymous with _income_) is used to designate those items which, when brought together in an account, exhibit the profit or loss of the business. _Revenue receipts_ are the receipts which originate exclusively from the sale or exchange of the commodities or things of value for the handling of which the business has been organized. _Revenue expenditures_ are those expenditures connected with the expense of operation or administration of a business, including such items of expense as postage, printing, salaries, rent, etc. _Revenue accounts_ is a term used to designate those accounts that represent revenue receipts or revenue expenditures. =54. Revenue Receipts.= The account representing revenue receipts in all lines of business (though it may sometimes be known by another name) is the _sales account_--a representative account showing net sales. Net sales, less cost of goods sold, represent gross profits. Gross profits, less cost of conducting the business (revenue expenditures) represent net profits. =55. Expense.= The broad term _expense account_ represents all revenue expenditures; but in modern bookkeeping the amounts of the different classes of expense are kept separate as far as possible.