Income, Operating Income, Expenses, Net Income
Income (Revenue) - Money earned from the sale of your products or services is recorded as income. Your company might have one income account or several, depending on the detail needed for your financial analysis. Another category of income is Other Income, or income generated from the sale of a product or service not normal to your operations. Interest Income is an example of an Other Income account type.
Expense - An account that tracks and categorizes what your company is spending. You can think of expenses as money that leaves the company. An Other Expense is money spent on something other than normal business operations, such as corporate income taxes.
Cost of Goods Sold (COGS, Cost of Sales, COS) - Costs directly related to producing a service or good for sale. There is a direct relationship between these costs and your revenue. If your company sells a product, your cost of goods sold (also called COGS, or cost of sales) expenses would be the material, labor, and other costs incurred to make and sell the product. By contrast, your office expenses for rent or advertising are considered indirect and should not be posted to the Cost of Goods Sold account type.