Sales Revenue Business Definition

Usually sales are the net sales that the firm achieves minus the cost of returned merchandise.

Sales revenue business definition. In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. The two words can be used interchangeably since they mean the same thing. Sales revenue refers to the income generated by any business entity by selling their goods or by providing their services during the normal course of its operations and it is reported annually quarterly or monthly as the case may be in the income statement profit loss account of the business entity. A company generates sales revenue as a result of operating activities which involve the sale of goods or services to customers.

This figure is used to define the size of a business. The concept can be broken down into two variations which are. Sales revenue is the income received by a company from its sales of goods or the provision of services. Sales revenue is the income that a firm realizes from selling its products or services to the public.

It is important to note that revenue does not necessarily mean cash received. In a company s profit and loss account sales revenue is generally recorded net of vat and any trade discounts given for subsequent comparison with costs. They estimate that sales revenue will rise to 134 million. Also sales income commerce accounting the amount of income that a company receives from the sale of products or services in a particular period of time.

Sales revenue depends upon the volume of a product sold and the price of the product. Sales revenue is money that a company or organization receives from sales of its goods and services.