What is revenue?

What is revenue?

Revenue is income that is generated from business activities. Revenue, or sales, is/are reported on the income statement, and is what all the company’s costs are subtracted from. Revenue can be calculated in a number of ways, the most common one being: Revenue = Sales Price x Units Sold. Revenue can be divided into operating revenue and non-operating revenue. Operating revenue is derived from core business activities such as sales of a product. Non-operating revenue is revenues derived from non-core business activities such as legal wins or the sale of an asset.

 

For more information on this topic, check out this article from our friends at Investopedia.

investopedia.com/terms/r/revenue.asp

 

 

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