Business Income Vs Revenue
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Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.
Business income vs revenue. For individuals however inco. Learn more in cfi s free accounting courses. Revenue and net income are related. Interest on investments dividends.
What remains after expenses and taxes are subtracted from revenue. What s the difference between income and revenue. Revenue is a subset of income which includes earnings only from the primary operations of the business. Is the sales amount a company earns from providing services or selling products the top line.
The two terms tell different but equally valuable stories. Revenue is the gross amount i e. Income can sometimes be used to mean revenue or it can also be used to refer to net income which is revenue less operating expenses the bottom line. While revenue includes earning generated only through the sale of goods and or services associated with the company s primary operations income also includes earning from other operations like.
Revenue is divided into operating and non operating revenue profit is classified as gross and net profit and income can be classified as earned and unearned income. Revenue refers to the sum of money which the company generates from doing the business in the normal course of operations from its customers whereas net income refers to the income earned by the company or the income left over in the company after deducting all the expenses of the period from the net revenue. Revenue also known as gross sales is often referred to as the top. Without any deductions while profit and income are derived after deductions of expenses and taxes.
In the absence of revenue there is neither profit nor income in the business.
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