Sales Revenue In Accounting Terms

Both revenue and sales are used as the same but when it is seen in accounting terms both can be easily differentiated.

Sales revenue in accounting terms. Sales revenue includes both cash and credit sales. Revenue can be calculated by adding sales with other incomes generated by the company whereas sales can be calculated by multiplying the total goods services sold with its price. Sales revenue is the income received by a company from its sales of goods or the provision of services. Credit sales are sales made by a business to a customer which do not require immediate payment.

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. Sales revenue is the income that a firm realizes from selling its products or services to the public. Revenue does not necessarily mean cash received. The customer has an account with the business and will be required to pay in accordance with the credit terms agreed with the business for example they may be required to pay in 30 days time.