Revenue Definition In Business

Revenue is also known as sales as in the price to sales ratio an alternative to the price to earnings ratio that uses revenue.

Revenue definition in business. In accounting revenue is the income or increase in net assets that an entity has from its normal activities in the case of a business usually from the sale of goods and services to customers. Some businesses also receive revenue from royalties or interest. Commercial revenue may also be referred to as sales or as turnover some companies receive revenue from interest royalties or other fees. These earnings must be recorded in revenue accounts at the top line of your company s income statement.

You subtract business expenses from revenue to get your company s bottom line. Revenue may refer to income in general or it may refer to. Money collected by a government as through taxes. Revenue in economics the income that a firm receives from the sale of a good or service to its customers.

The income that a government or. Revenue is a measure of how much raw income a company is bringing in from sales of its products and services. Falling revenues each year signal that a company is faltering or shrinking. Less any returns or discounts.

Usually based on a firm s sales financial analysts can estimate the size of a firm. In algebraic form revenue r is defined as r p q. A company that sees its revenue rise every year signals that a company is selling more of its products and services which can help it grow. Revenue is also called the top line because it is the first item listed on your small business income statement.

Money that is made by or paid to a business or organization sales revenues 2. Kids definition of revenue 1. Revenue is money brought into a company by its business activities. Technically revenue is calculated by multiplying the price p of the good by the quantity produced and sold q.

A company can generate different kinds of revenue from product sales to rent income and franchise fees. Revenue is the money your business receives during a certain accounting period.