Accounting Definition Other Revenue
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Revenue also called a sale is an increase in equity related to the sale of a product or service that earned income.
Accounting definition other revenue. In other words revenue is income earned by the company from its business activities. A variety of expenses related to the cost of goods sold and selling general and administrative expenses are then subtracted from revenue to arrive at the net profit of a business. Revenue is also known as sales. Revenue that a company derives from any source other than its operations.
Most though not all other revenue is non repetitive and as such is excluded from many calculations of profit. For example if a company sells one of its factories or receives income from interest payments it is considered other revenue. Accountants guidebook how to audit revenue revenue recognition. Revenue is also known as sales as in the price to sales ratio an alternative to the price to earnings ratio that uses revenue.
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