Revenue Vs Net Income
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If your net revenue was 70 000 and you spent 25 000 running your business your net income would be 45 000.
Revenue vs net income. Aapl posted a top line revenue. The net revenue is what a company earns as a whole and the net income that the company is left with after bearing all the expenses and adding other sources of income. Many investors also report their income and the. Net income on the other hand is the profit that is left after subtracting all the expenses cost of goods sold expenses depreciation interest and taxes etc from revenue.
Net income is the same as the profit of a business or its earnings for all of these terms profit net income or earnings we are talking about a net amount including both the income revenue of the business and deductions to that income. Small business owners can look at their net revenue vs. Revenue refers to the total amount of money that is generated by the sales of goods and services from the company s operations. Just as revenue is the top line net income is the bottom line or the bottom figure on a company s income statement.
Revenue is also called top line in financial context. Revenue is the total amount of sales generated by a company while income refers to the net profit earned minus expenses. Income example apple inc. Example let s say that we have the gross revenue of 110 000 with a sales discount of 10 000.
Let s quickly dive deeper into these two terms before we get started. So while revenue shows the total amount of money coming in income shows the total amount coming in and out. Let s go back to the hypothetical shoe store. Your management department may make decisions on whether to continue selling a product based on the gross margin of the good.
Recognizing and reporting revenue are critical and complex problems for accountants.
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