Accounting MascotAccounting Q&A

What is revenue? Does revenue mean you deduct all your expenses, and out of that net profit is your revenue?
submitted by Saad

Ronald Raygun

Revenue is the total income generated by a business from its main operations. This could be the money you make from selling some good or service, before you deduct any expenses out of it.

Revenue is reported on the income statement as the top line. After you deduct the expenses from your revenue, you get net profit or net income. Revenue is not equivalent to net profit. Revenue is before expenses.

Jimmy Swells

Revenue is the money a company earns from selling its products. It's the total sales amount.

Revenue is a total number, before you'd taken out expenses like advertising. Expenses are taken away from revenue to find out how much money the company actually made after costs, which is called profit.

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