What Does Revenue Mean?


8 Answers

James Kent Profile
James Kent answered
Revenue is the amount of money from goods and/or services a company provides to its customers.  The word for revenue will also vary depending on what country you are in, however the definition remains the same.

Typically in business examples, this revenue is income that a company will receive from the normal day-to-day business transactions. In some cases, a company’s revenue will be derived from the interest on its items sold, or royalties paid to them from other companies who use the product.

For certain organizations, like for non-profits, their annual revenue is sometimes referred to as gross receipts. This type of revenue will include non-taxable monies such as donations from companies or individuals, government supports, monies received from activities like fundraising that are related to the organization’s aim, and financial investments, like shares in stocks.

Tax revenue is similar to that of business revenue, in that this is income that the government will receive from taxpayers.

There are a few ways that revenue is calculated, but all are income based and created by a government. Two common methods are used, such as cash basis accounting and accrual basis accounting, but do not use the same process for calculating the revenue.

Cash basis accounting does not conform to the provisions of GAAP. GAAP stands for ‘Generally
Accepted Accounting Principles’ and was established by the Financial Accounting Standards Board. Cash basis accounting is not considered a good way of managing monies, as it leaves gaps in the recording process and is more suited for companies or organisations with little actual cash intake.
Accrual basis accounting is the most commonly used method. Under the accrual method, companies are cautious as to when income and expenses are documented on any official report.
Steven Vakula Profile
Steven Vakula answered
Revenue is the income derived from the sale of goods, products and services sold by a company in it operations.
Sajid Majeed Profile
Sajid Majeed answered
In common Language "Revenue" means Tax or income. But in a business concern revenue means, Sales proceeds of goods or services or it is the price of goods sold or services rendered to the customers.
According to the American Accounting Association, Revenue is the monetary expression of the aggregate of products or services transferred by an enterprise to its customers during a period of time. When a business delivers goods to its customers or render services to them, it either receives immediate payment in cash or acquires an account receivable which will be collected and thereby become cash within a short time.

Sources of Revenue:
Sale proceeds of goods or services.
Interest received on investment.
Dividend received on share.
Discount received from creditors.
Commission received from customers.
Profit on sale of assets.
It may be mentioned here that various terms are used to describe different types of revenue. For example, business which sells goods rather than services will use the term "sales" to describe the revenue; revenue earned by a property dealer may be called commission earned; in the professional practice of layers, charted accountants, the revenue is called "fees earned".
Every business has one or two major sources of revenue and may also, have some minor sources of revenue also.
Muddassar Memon Profile
Muddassar Memon answered
Revenue basically is a business expression used extensively in the US for the total sum of money which a company earns from its activities in an allotted period, mainly from the sales of goods or services which they give to clients.

In the European region this expression is known as turnover. For administrative authorities, revenue generally means the total proceeds which are collected from taxes, fees, etc. Revenue is also at times known as "top line" because of its arrangement on the income statement at the very peak.

Revenue is generally cut down in economics or basic finance projections to "Price x Quantity". Revenue is an important section of any financial analysis. How well companies perform can be calculated on the basis of revenue it generates.
Anonymous Profile
Anonymous answered
A business expression used extensively in the US for the total sum of money which a company ...
Nouman Umar Profile
Nouman Umar answered
There are different types of revenues which can be gathering for the business or starting up a business. Revenue is income which is generated by the business or any other activity of the business. There are many sources of the revenues for the business as well as for the individuals. A business can earn its revenues by providing its services so that it can earn revenues to the people. So there are different types of the business which make their profits by providing the services to the customers. The revenues can be generated from the sale of any products in the market.

So there are many other types of the business which can be adopted in order to generate the business activity. So there are many individuals who are doing business for generating their revenues for their business. So many companies who are involved in the business of sale and purchase of shares in the capital and stock market they make their revenues from their so this is the way the people generate their revenues from a business. So this is the way the people do business in any organization. There are different sources which the organization uses in order to generate revenues for themselves.

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