2007-09-11 03:08:31 · 6 answers · asked by afahs1 2 in Business & Finance ➔ Corporations
Most people use these terms interchangeably - sales and revenue. Depending on your co's principal activities, revenues can come from several sources - sales of goods, provision of services, commission income, interest, royalties, dividends, etc. All these together form your total revenue. If you have only 1 form of revenue - sales, then they would be the same thing.
Revenue recognition is covered by IAS 18.
2007-09-11 03:12:22 · answer #1 · answered by Sandy 7 · 0⤊ 1⤋
Revenue is your profit margin. How much you actually take to the bank so to say.
If I sale 100 dollars worth of lemonade, after counting the investment (5$ for lemons), operation costs (10$ for a place at the flea market) and hourly pay (5$ an hour to my little brother for 3 hours.)
I will pay out 30$ and only have a revenue of 70$ even though my sales show 100$.
2007-09-11 10:12:29 · answer #2 · answered by Michael G 5 · 0⤊ 2⤋
Sales and revenue are used interchangeably. I've noticed in practice that Sales is more often used when you sell goods or inventory.
2007-09-11 17:33:10 · answer #3 · answered by Milton W 2 · 0⤊ 2⤋
sales may refer to sales of goods, while you may make some interest on your checking balance or cash in a money market.
this all combined would be revenue.
2007-09-11 10:11:57 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Revenue is profit, regardless if it is from sales or other activities.
Sales is not necessarily profit.
2007-09-14 10:34:18 · answer #5 · answered by Feeling Mutual 7 · 0⤊ 1⤋
The terms are interchangable.
2007-09-11 11:09:18 · answer #6 · answered by fatcomo 2 · 0⤊ 2⤋