Revenue Vs Profit Definition
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The answer requires an understanding of Gross Profit and Gross Revenue.
Revenue vs profit definition. On the other hand turnover refers to the number of times a company burns through assets like inventory cash and workers. The words are commonly used as synonyms to describe the total sales or income of a business over a given period. This level varies between accountants and industries.
In simplest terms revenue is the total amount of money flowing into your company from the sales of goods and services. Different types operating revenue and non- operating revenue. Revenue is the top line of the income statement whereas the profit is the bottom line.
Revenue total sales total returns. Turnover are as follows Revenue represents the amount of money a company makes by selling its goods or services to the customers. The annual business revenue is how much money a company generates in a year whether from sales or interest from investment.
It is also referred to as the total sales. Revenue is different from net profit. The amount of revenue earned depends on two things - the number of items sold and their selling price.
When speaking about cash and your company its important to distinguish between revenue and profit. Revenue is the income earned by a business over a period of time eg one month. So earning a profit means that youve made more money than it costs to deliver the goods or services.
In a nutshell the difference between revenue and profit is that Revenue can be termed as money a business makes by selling its main goodsservices whereas profit is what is left after paying all the bills. Free Activities for Kids. Revenue is the total amount of income generated by the sale of goods or services related to the companys primary operations.
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