Final answer:
The term that can be used interchangeably with revenues is sales. Revenue refers to income from selling products, calculated by price multiplied by quantity, distinct from profits or earnings. Thus, the option "B" is the correct answer.
Step-by-step explanation:
Another term that is often used interchangeably with revenues is (B) sales. Revenue is defined as "income, especially when of a company or organization and of a substantial nature." This is the income that a firm generates from selling its products. Total revenue is calculated by multiplying the price of the product by the quantity of output sold. This equation can be represented as: Total Revenue = Price x Quantity. It is important to differentiate revenue from other financial terms such as profits and earnings. Profits are what is left of the revenue after all expenses have been subtracted. Earnings can refer to the bottom line on a company's income statement (net income), which is profits after taxes and additional income/expenses.
Given that revenues can grow significantly over time, as shown by the growth of the U.S. government's revenues since World War II, businesses pay careful attention to their revenue figures as a measure of success and growth potential. Firms earn revenue by producing and selling goods and services to households in the market for goods and services. Households pay for these goods and services, and this spending becomes the revenues for firms.