Revenue Definition Vs Profit

Profit is the bottom line or net income after accounting for all expenses debts and operating costs.

Revenue definition vs profit. Gross profit net profit etc. Expenses can include anything from inventory costs to taxes. A more comprehensive definition of revenue is the amount you receive from the sale of goods and services and from other day to day operations. Revenue is the total amount of income generated by a company.

Gross gaming revenue ggr is the revenue of a virtual gambling establishment and net gaming revenue ngr is an express method for determining the level of profitability. Revenue is the top line of the income statement whereas the profit is the bottom line. As a rule ggr and ngr are two indicators used to evaluate the success of online gambling establishments. Therefore revenue is earned every time you sell something for either credit or cash.

Profit is the figure left over after business costs debts and any other money outflow have been deducted. When speaking about cash and your company it s important to distinguish between revenue and profit. Gross profit cover is suited to those businesses which have variable costs e g. Manufacturers retailers importers wholesalers etc.

The revenue produced from your sales is known as your turnover. Profit is the financial gain of a business or the difference between the amount earned and the amount spent in buying operating or producing something. 31 july 2019 07 40. They do not vary directly with the level of sales.

Profit is what is left after deduction of all expenses from revenue. Revenue is divided into operating and non operating revenue profit is classified as gross and net profit and income can be classified as earned and unearned income. In simplest terms revenue is the total amount of money flowing into your company from the sales of goods and services. Profits can be calculated at various levels e g.

The amount of money recovered by a business corporation over the course of some business activities without making any deductions. Gross revenue cover is suited to businesses where the expenses which generate the sales are largely fixed i e. The remaining amount of money after subtracting all expenses from the revenue. From a broader perspective profit revenue expenses.

Profit revenue expenses. Gross profit is the difference between total revenue earned from selling products services and the total cost of goods services sold. While revenue includes the gross earning from primary operations without any deductions profit is the resultant income after accounting for expenses expenditures taxes and additional income and costs in the revenue. Without any deductions while profit and income are derived after deductions of expenses and taxes.