Revenue is the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.
Revenue is calculated by multiplying the average sales price by the quantity of units sold, and it is equal to that sum. The top line (or gross revenue) number is what net income is determined from by deducting expenses. Revenue is sometimes referred to as sales on the income statement. The money made by a business's operations is known as revenue. Revenue may be estimated in a number of ways, depending on the accounting method utilized. Under accrual accounting, sales made on credit will be recorded as revenue for goods or services given to the client.
The top line is referred to as revenue since it appears first on an organization's income statement. Net income, sometimes known as the bottom line, is calculated by subtracting costs from revenues. Profit is achieved when sales are greater than costs.
In order to increase profit and subsequently profits per share (EPS) for its shareholders, a company may increase sales or reduce spending. Investors typically examine a company's sales and net income independently to determine the health of the business. Cost-cutting measures may lead net income to increase while sales remain unchanged.
Although sales revenue and profit are sometimes used interchangeably, they are actually rather different concepts. The money received for the selling of products or services is known as sales or revenue. Profit is the amount left over from those sales after operating expenses have been deducted.
Thanks,
Eddie