Revenue Expenses Profit

The surplus remained after reducing all expenses from the revenue is known as profit.

Revenue expenses profit. Profit is a subset of revenue. People often refer to net income as the bottom line as it is the last line item on an income statement. Sometimes revenue is referred to as turnover.

If you rent out more than one property the profits and losses. Operating Profit Revenue Operating Expenses b. While revenue includes the gross earning from primary operations without any deductions profit is the resultant income after accounting for expenses expenditures taxes and additional income and costs in the revenue.

Cannot be described as operating profit pretax profit EBIT or EBITDA a. When the old man with a top hat comes in each morning and hands over 5 for his slice of cream cake that 5 is considered to be revenue. Or in a type of assets depreciation like machinery building furniture land etc.

In business and accounting net income also total comprehensive income net earnings net profit bottom line sales profit or credit sales is an entitys income minus cost of goods sold expenses depreciation and amortization interest and taxes for an accounting period. The amount of revenue earned depends on two things - the number of items sold and their selling price. The formula for net income is simply total revenue minus total expenses.

Remember not all money you receive is revenue. Gross Profit Revenue Cost of Goods Sold 2. Revenue is the top line of the income statement whereas the profit is the bottom line.

If youre self-employed your business will have various running costs. A profit and loss statement PL or income statement or statement of operations is a financial report that provides a summary of a companys revenues expenses and profitslosses over a given period of time. The actual earnings of the company during a particular accounting year is known as income.