What is revenue?
Understand the Problem
The question is asking for the definition and explanation of the term 'revenue'. Revenue is a key financial concept that refers to the total income generated by a business from its normal business operations, often coming from sales of goods or services. This question seeks to clarify what revenue means and its significance in a financial context.
Answer
Revenue is the income generated from business operations like the sale of goods and services.
Revenue is the income a company earns from its normal business operations, particularly from the sale of goods and services.
Answer for screen readers
Revenue is the income a company earns from its normal business operations, particularly from the sale of goods and services.
More Information
Revenue is often called the 'top line' because it is the starting point for calculating profit after deducting all expenses.
Tips
A common mistake is confusing revenue with profit. Revenue does not account for expenses, while profit does.
Sources
- Revenue Definition, Formula, Calculation, and Examples - investopedia.com
- Revenue - Wikipedia - en.wikipedia.org
- What is the Definition of Revenue? | Revenue Meaning | Sage Advice - sage.com
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