Investment Income Vs Revenue

Revenue is the total amount of money the business receives from its customers for its products and services.

Investment income vs revenue. Revenue is at the top while income is placed at the bottom. For individuals however income generally refers to the total wages salaries tips rents interest or dividend received. The income arises from non recurring transactions by certain or a certain event is called capital income. As you might expect income investing is characterized by the creation of cash flow.

We start the income statement by gross sales and then deduct the sales return or sales discount. The premium on letting out shops or houses. They can be found in the same financial statement i e the income statement. Rather it is about choosing relatively stable investments that offer a fairly predictable pay out.

What remains after expenses and taxes are subtracted from revenue. The idea behind income investing is not to look for a way to make it big on a great stock pick. And we get net sales. Aapl posted a top line revenue number of 260 billion for 2019.

The following are the main differences between capital income and revenue income with examples. Price received on investments in small saving schemes. The difference between capital gains and other types of investment income is the source of the profit. For a business income refers to net profit i e.

The company s revenue number represented a 2 year over year decrease. Revenue is the starting point of income while income provides the monetary power and cash flow to produce the next cycle of production and in extension the revenue. Investment income is income coming from interest payments dividends capital gains collected upon the sale of a security or other assets. But the income is a subset of the revenue whereas the revenue is the superset of the income.