General Revenue Accounting Definition

Revenue also called a sale is an increase in equity related to the sale of a product or service that earned income.

General revenue accounting definition. A company s revenue which is reported on the first line of its income statement is often described as sales or service revenues. In other words revenue is income earned by the company from its business activities. There are many different types of revenues including product sales consulting fees and other services rent and even commission based fees. That is general revenue is not earmarked automatically for functions such as road maintenance or payroll for state workers.

Revenue is listed at the top of the income statement. Terms similar to revenue. General revenue is the income a government receives primarily from its taxing authority and not including income from other sources such as the sale of utility services like water or power or from the sale of other goods such as alcoholic beverages. 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 recognition is a generally accepted accounting principle gaap that identifies the specific conditions in which revenue is recognized. Rather the government may use general revenue for discretionary functions. Hence revenue is the amount. Accountants guidebook how to audit.