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Know more about Revenue

Revenue is the "top line" or " gross income" figure from which costs are subtracted to determine net income.

July 09, 2015 / 12:17 IST
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There are multiple ways in which company makes money during the respective accounting period. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.

Sales means the money received from sale of products/services. We deduct any sale discounts offered. It is arrived at by multiplying price of product with quantity sold. It may also include sale of scrap.

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Interest earned over invested money or idle cash is also accounted for. Income gained from stock sale is also included in revenue. Revenue also account for gains from other than primary business activities.

For example rent, income from patents, goodwill and one time money receipts such as equipment or real-estate sale.

first published: Jul 9, 2015 12:17 pm

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