Gross Revenue Accounting Definition

This figure indicates the ability of a business to sell goods and services but not its ability to generate a profit.

Gross revenue accounting definition. A business s gross revenue is the money generated by all its operations before deductions are taken for expenses. Deductions from gross revenue include sales discounts and sales returns. As such gross revenue includes not just money made from the sale of goods and services but also from interest sale of shares exchange rates and sales of property and equipment. Gross revenue also known as gross income is the sum of all money generated by a business without taking into account any part of that total that has been or will be used for expenses.

Gross revenue is the total amount of sales recognized for a reporting period prior to any deductions. It is the company s revenue minus the cost of goods sold cogs. Revenue can come from the sale of the company s products or services from the sale of surplus equipment or property or from the sale of shares of stock in the company. It thereby highlights a business s ability to sell products and services but it does not reveal if a company is able to strike a profit.