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any examples will do.

2007-06-20 20:45:20 · 3 answers · asked by Anonymous in Business & Finance Corporations

3 answers

Revenue is earned by prividing goods or services to customers. To earn revenue, you also incur expenses. When reveues are greater than expenses, you have a profit. If expenses are greater than revenues, you incur losses. There are many types of revnue.

1. Sales Revenue from sales of products. You buy the products at one price (your cost of the product) and sell it at a higher price.

2. Service Revenue from sales of services. You perform a service for someone, such as mowing lawns, preparing a legal document, or performing an operation.

3. Rent Revenue from renting property. You own a house and you rent it to a tenant at a monthly rent.

4. Interest Revenue, earned by lending money. You put money in a savings account, i.e. lend it to the bank, and it pays you interest. Or you buy a govenment bond, i.e. lend money to the government.

5. Royalty Revneue. You write a book, a publsiher publishes it and pays you roylaties for each copy sold.

6. Lease Revenue. You agree to allow a farmer to use your land for the next 5 years to raise a crop. The farmer pays an annual fee.

In each case you are exchanging something of value. Revenue si the increase in wealth resulting from the purpose of your business. In addition to revenue, other ways to increase wealth include gains, prizes, grants, subsidies, donations, etc. These are not considered revenue because there is no exchange.

Gains occur when you invest in a stock at $20 per share and later sell the stock at $30 per share. You have a $10 per share gain. Or you sell the house you were renting for more than you paid and you have a gain. But if you are in the business of building and selling houses, then the sale of the house is revenue.

2007-06-21 03:47:52 · answer #1 · answered by Anonymous · 0 0

Types of Revenue: (Individual, Corporate, Government...)

Cash
Securities
Property
Bequests
Goods and Services
Royalties
Contracts
Grants
Goods And Services
Training Fees
Speaking Fees
Subsidies and Loans
Third Party Payments


PROS and CONS here:

http://72.14.253.104/search?q=cache:zcg4l6gAyEgJ:www.ceffect.com/resources/PROS_CONS.pdf+types+of+revenue:&hl=en&ct=clnk&cd=1&client=safari

2007-06-21 03:54:14 · answer #2 · answered by MissKittyInTheCity 6 · 0 0

Sales
Income from services rendered (includes all services e.g legal, consultancy, teaching, accounting, hair-styling, etc)
Dividends from investments
Interest from deposits with financial institutions
Rental income
Gain on disposal of fixed assets
Insurance premiums (for an insurance co.)
School fees (for a school)
Royalties
Franchise fees
Commission (for a sales agent)
Donations (for a not for profit orgn)

2007-06-21 10:49:10 · answer #3 · answered by Sandy 7 · 0 0

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