revenue (redirected from gross revenue)

See Unearned income.

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revenue

The inflow of assets that results from sales of goods and services and earnings from dividends, interest, and rent. Revenue is often received in the form of cash but also may be in the form of receivables to be turned into cash at a later date.

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Revenue. Revenue is the money you collect for providing a product or service.

Revenue is different from earnings, which is what's left of your revenue after subtracting the costs of producing or delivering the product or service and any taxes you paid on the amount you took in.

When corporations release their financial statements, those that provide services, such as power or telecommunications companies, describe their income as revenues, while those that manufacture products, such as lightbulbs or books, describe their income as sales.

The money a government collects in taxes is also called revenue. The US body that collects those taxes is called the Internal Revenue Service (IRS). In the United Kingdom, it's Inland Revenue.

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revenue

The total rent, sales, or earnings of a company. When negotiating for the purchase of income-producing property, be sure to inquire about the seller's definition of revenue rather than make the assumption that the seller is using the correct terminology to describe figures supplied to you. Contrast with income.

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Revenue

What Does Revenue Mean?

The amount of money a company actually receives over a specific period; it accounts for sales discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income. Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold. Also known as REV.

Investopedia explains Revenue

Revenue is the amount of money a company receives as a result of its business activities. In the case of government, revenue is the money received from taxation, fees, fines, intergovernmental grants or transfers, securities sales, mineral rights, and resource rights as well as any sales that are made. For companies, it comes from selling goods and services.

Related Terms:
• Accounts Receivable—AR
• Cash Conversion Cycle
• Contribution Margin
• Cost of Goods Sold—COGS
• Profit Margin