Question

Which of the following is an example of a revenue? Select all that apply.

1. Polar Caps designs and manufactures cold-weather hats, hoods, and protective headgear. They shipped and invoiced $6,000 worth of product to a large retailer in Anchorage.
2. Maria owns a yoga studio. A customer attended a walk-in class, and at the time of the class, Maria was paid in cash $15 for the class and $5 for rental towels and mat and a bottle of water.
3. Advelonics, an electronics company in Singapore, received an order valued at 100,000 Singapore Dollars. They also received 20,000 Singapore Dollars as a down payment.

Answer 1

Examples of revenue include the invoiced product sales to a retailer by Polar Caps, the payment received for a yoga class and the down payment received by Advelonics. Each of these represents income from normal business operations.

Step-by-step explanation:

Revenue is income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.

Using the given options, the examples of revenue are:

1. Polar Caps designs and manufactures cold-weather hats and shipped and invoiced $6,000 worth of product to a retailer in Anchorage. This is revenue as it is income from sales.
2. Maria owns a yoga studio. She received $15 for a class and $5 for rental towels and mat and a bottle of water. This is also revenue since it's the income from providing a service.
3. Advelonics, an electronics company, received a down payment of 20,000 Singapore Dollars. Even though this is a partial payment, it still counts as revenue for the firm.

Thus, in these cases, the invoiced product sales, payments for service, and the down payment for an order are all forms of revenue.