Revenue Of A Business Definition
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It is also known as sales or turnover of the business.
Revenue of a business definition. In other words an income to a business or an organisation is termed as revenue. The types of revenue that a business records on its accounts depend on the types of activities carried out by the business. You subtract business expenses from revenue to get your company s bottom line. Revenue is also called the top line because it is the first item listed on your small business income statement.
Revenue also called a sale is an increase in equity related to the sale of a product or service that earned income. 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 is the money your business receives during a certain accounting period. Or the provision of services.
Revenue is the value of all sales of goods and services recognized by a company in a period. Commercial revenue may also be referred to as sales or as turnover some companies receive revenue from interest royalties or other fees. Revenue may refer to income in general or it may refer to. 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.
In other words revenue is income earned by the company from its business activities. Generally speaking the revenue accounts of retail businesses are more diverse as compared to businesses that provide services. Revenue also referred to as sales or income forms the beginning of a company s income statement and is often considered the top line of a business.
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