Accounting

Book value is the value of an asset according to its balance sheet account balance.

For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset.

Traditionally, a company's book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variable include goodwill, intagible assets, or both.

An expense consists of the economic costs a business incurs through its operations to earn revenue.

Businesses are allowed to write off deductible expenses on their income tax returns to lower their taxable income and thus their tax liability.

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise.

It is the top line or gross income figure from which costs are subtracted to determine net income.

Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.

Revenue is also known as sales on the income statement.

A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time.

The balance sheet adheres to the following formula:

An intangible asset is an asset that lacks physical substance (unlike physical assets e.g. machinery and buildings) and sually is very hard to evaluate.

E.g. patents, copyrights, franchises, goodwill, trademarks, trade names.