Final answer:
Revenue is the income generated from normal business operations. It is calculated by multiplying the price of a product or service by the quantity sold. Understanding revenue is important for monitoring a company's financial performance.
Step-by-step explanation:
Revenue is the income generated from normal business operations. It is the total amount of money a company receives from selling its products or services. Revenue is calculated by multiplying the price of the product or service by the quantity sold. It is an essential component of a company's financial performance and is reported on the income statement.
For example, if a company sells 100 units of a product for $10 each, the revenue generated would be $1,000 (100 units x $10).
Other key terms to understand in the context of revenue include revenue streams, which represent different sources of revenue for a company, and profit, which is the amount left after subtracting all costs and expenses from revenue.