Revenue Vs Profit Vs Income

In the absence of revenue there is neither profit nor income in the business.

Revenue vs profit vs income. 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. The key difference between revenue and profit is that revenue refers to the income generated by any business entity by selling their goods or by providing their services in an accounting period during the normal course of its operations whereas profit refers to the amount realized by the company after deducting the expenses from the total amount of revenue. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations. Revenue is the total amount of income generated by the sale of goods or services while income is earnings or profit revenue minus expenses.

Although net revenue and gross margin are useful internal figures external parties care most about net income. Revenue is the gross amount i e. Key differences between revenue vs profit. Revenue is the top line of the income statement whereas the profit is the bottom line.

The main difference between revenue profit and income is that revenue only deems the amount of income a business originates through the sale of its goods or services whereas profit is the figure of income that remains after all expenses costs and taxes accounted for and income refers to net profit i e what remains after. Without any deductions while profit and income are derived after deductions of expenses and taxes. From the income or revenue. In short we can say profit is the revenue which is left after deducting the expenses.

Profit is the amount left positive post deduction of all kinds of costs expenses taxes etc. So while revenue shows the total amount of money coming in income shows the total amount coming in and out. Here are the key difference between revenue vs profit revenue is the total income generated by a business from the sale of goods services whereas profit is the surplus which remains after deducting all expenses and taxes associated. Profit the actual reward for the risk taken by the businessman in the business.