30.6k views
4 votes
THE TOTAL AMOUND OF MONEY A BUSINESS TAKES IN DURING A GIVEN PERIOD BY SELLING GOODS AND SERVICES IS ITS

1 Answer

2 votes

Answer:

REVENUE

Step-by-step explanation:

Total amount of money business takes in during a given period by selling goods and services is REVENUE

Eg : A good costing Rs 5 is sold for Rs 10 , So revenue = Rs 10 . In case of many goods quantity , Total Revenue = Price X Quantity - Eg if 5 such goods are sold, Total Revenue = 10 X 5 = 50 .

Revenue shouldn't be confused with Profit . Profit is the difference between Cost & Revenue. Above ex : Profit is Rs 10 - Rs 5 = Rs 5 per unit .

Also , Revenue may be recieved / due to be recieved (from debtors). However , revenue is recognised when the transaction is entered into , as per the accrual basis of accounting.

User Aeluned
by
4.9k points