are sales and revenue the same thing?

Answer 1

This is the definition my Glencoe Accounting book gives, Sales is a revenue account used to record the merchandise sold. Revenue is income earned from the sales of goods and services. Think of it this way you post your sales to your revenue account. These are called temporary capital accounts. You close these accounts out at the end of every accounting period and post them to your Owner's Equity. Hope this helps

Answer 2

The question could be are sales, revenue and cash flow the same thing.

Sales are the value, for example a contract to build a building which will take over a year to build. The sale is the total value of the contract.

Revenue is the value of the work invoiced to the customer - maybe the invoice is by month, by bricks laid, floors built, whatever.

Cash flow is the value of the money received from the customer.

Answer 3

No. If you are talking about a business, sales is usually associated with the income earned from the primary product while revenue is income earned from any type of activity connected to the business including the sales of the primary product.

eg: If you have a clothing store but you also have a gumball machine (the one that is used for donations and such) where you get a percent of sales. Sales of clothing (your primary product) is sales. While the income earned from sales and the gumball machine becomes revenue.

The best example is restaurants. Many of them have public telephones from which they get a certain amount. The sale of food is sales and the income earned from the telephones and the food becomes revenue.

Answer 4

sales are what went out and revenue is the capital that came in

Answer 5

they both do generate income although in sales money is generated when you sell off something while revenue could even come in the form of rent money received.

Answer 6

yes - but think of your sales as units and your revenue as money

Answer 7

No.