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Gross profit is the difference between total revenue earned from selling products services and the total cost of goods services sold.
Revenue and profit same. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations. Both terms deal with the positive flow of cash. Different types of profit. Gross profit is your total sales minus the cost of goods sold.
Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations. Net income is a specific figure the renowned bottom line of an income statement. Profit is what is left after deduction of all expenses from revenue. Income relationship the year before their income was 9 86 billion from 500 billion revenue.
While revenue is the proceeds from the sale of goods profit is the gain earned by the business which can be gross profit or the net profit. Revenue profit and income are three terms which sound same to a layman although in business terminology there is a huge difference between them. Profit simply means revenue that remains after expenses. To generate profit you have to generate enough revenue to offset your expenses and still have income leftover.
The key difference between revenue and profit is that revenue refers to the income generated by any business entity by selling their goods or by providing their services in an accounting period during the normal course of its operations whereas profit refers to the amount realized by the company after deducting the expenses from the total amount of revenue. Income or net income is a company s total earnings or profit. Profit is a subset of revenue. Differences between revenue and profit.
Walmart s profit for the year actually corresponds roughly to their historical revenue vs. Profits can be calculated at various levels e g. Gross profit net profit etc. Gross profit operating profit and net profit.
Revenue implies the money received by the company from its day to day operations alongwith the non operating activities. From a broader perspective profit revenue expenses.
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