Final answer:
Net revenue is equal to gross revenue minus any allowances, deductions, and anticipated bad debt. Gross revenue represents the total revenue a company earns from selling its products or services before any deductions or allowances are made. Net revenue accounts for these deductions and allowances to provide a more accurate measure of a company's actual revenue.
Step-by-step explanation:
Net revenue is equal to gross revenue minus any allowances, deductions, and anticipated bad debt. Gross revenue represents the total revenue a company earns from selling its products or services before any deductions or allowances are made. It is the income generated from the sale of goods and services without considering any expenses incurred in the process. This means that net revenue accounts for these deductions and allowances to provide a more accurate measure of a company's actual revenue after accounting for any potential bad debt or adjustments.