Can someone please explain to me what revenue is?

Question

Break it down for me please. Thanks.

Answer 1

Revenue is another word for sales. If you have a business and you sell something, the proceeds are recorded as sales or revenue. If you provide a service, the amount you get for the service is revenue. Revenue is just the amount of money you bring in before costs.

Revenue (sales) - costs = profit.

Gross Revenue is before any reserves for returned goods, discounts, etc

Answer 2

The amount of money that a company actually receives during a specific period such as the fiscal year, minus discounts and returned merchandise is gross revenue. It is the top class on the profit and loss as Gross income. From that amount the cost of goods is first deducted which will calculate the Net income from the business. Then the deduction of the expenses directly related to your business and then the deduction of the fixed or overhead expenses, you will arrive at the Net Profit/Loss of the business in that given period.

Answer 3

Revenue is a business term for the amount of money that a company receives from its activities in a given period, mostly from sales of products and/or services to customers. It is not to be confused with the terms "profits" or "net income" which generally mean total revenue minus total expenses in a given period. In Europe the term is turnover. For individuals, the equivalent term is income. For government, revenues refers to the gross proceeds received from taxes, fees, and the like. For non-profit organizations, revenue from products and services can be expanded to include proceeds from donations, grants, trade in lieu of cash, and other liquid assets.

Revenue is often referred to as the “top line” due to its position on the income statement at the very top. This is to be contrasted with the “bottom line” which denotes net income, revenues after all applicable costs. At times, the term “Sales” is used interchangeably, but is only accurate when the amount described is denoted in currency as opposed to units ($100,000 of computer sales vs. 300 computers sold).

Revenue is basically "price x quantity" (the price for one, times the number of them, or the price per kg times the mass in kg, etc.), summed over all goods; if the price per unit varies with the quantity then for each price per unit this multiplication is done, and the results are summed. Net revenue (revenue – returns) is used when sales returns are a factor in the business.

Revenue, like all income statement accounts, can only be presented in terms of a period, for example, the revenues a company earned between January 1, 2005 and December 31, 2005. Alternatively, one could express it in terms of the following examples: 2005 revenue, Q1 (1st quarter) revenue, or March revenue. This periodicity is in contrast to a balance sheet account, which would be given as of the date of the statement. To simply say that a company earned revenue of $5 million without giving a period is meaningless (however, saying that a company has $5 million cash certainly has meaning).

Internally, companies break revenue down by operating segment, geographic region, and product line.

Answer 4

Revenue is your sales. It equals the number of units sold times the selling price for that item. This is not the same thing as income...which is equal to revenue minus expenses.

Answer 5

Revenue is the total dollar amount brought in by a product or service. Gross revenue would be dollar amount before cost, net revenue would be dollar amount minus costs.

Answer 6

Revenue is how much money you generate through whatever means you are trying to make money, so in the case of a shop revenue is how much money they take through sales

Answer 7

Revenue is the amount of money something makes

Answer 8

Revenue = income (money).

Answer 9

money