Revenue Is Equal To Expenses

The revenue number is the income a company generates before any expenses are taken out.

Revenue is equal to expenses. Operating income is the sum total of a company s profit after. The majority of new businesses spend their first several years in debt. None of the above. In that scenario if my fixed expenses like electricity expenses salary expenses bank interest etc.

After the entries through december 3 have been recorded the balance sheet will look like this. It is not at all unusual for a business s expenses to exceed its revenues. The spreadsheet shows the monthly revenue and expenses for a new business use the models to predictt the month in which revenue will equal expense. There are many ways that businesses cope with this situation.

Revenue equals gross income but not net income. Net income the basis for calculations estimates and projections business leaders use the phrase net income when referring to a company s total profits after they ve taken all expenses into account. Month revenue expenses jan 4000 22 000 feb 9000 24 000 mar 13 000 25 000 apr 16 000 27 000 may 21 000 30 000 would someone please help and explain how to figure this out. Answers 2 cathmor 7 february 03 15.

Revenue is less than expenses c. Notice that the year to date net income bottom line of the income statement increased stockholders equity by the same amount 180. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses. Many take out loans of various sorts from financial institutions.

Revenues take time to build where as expenses are immediate. Revenue is often referred to as the top line because it sits at the top of the income statement. Revenue is the total amount of income generated by a company for the sale of its goods or services before any expenses are deducted. Revenues and expenses appear on the income statement as shown below.