Revenue

The term revenue denotes income generated through an investment, asset, tax or commercial activity.

While the term is almost synonymous with income, it is most commonly used to describe financial inflows into a company, government or organization.

When used in relation to companies, the term revenue denotes income generated through sales.

The term gross revenue denotes the total income generated by a company through sales within a given period of time. It differs from the term gross income, which denotes a company’s net profit before tax and also includes income generated through means other than sales.

Net revenue is found by subtracting returns, discounts and other losses from total sales. Net income, on the other hand, is found by subtracting all relevant costs including taxes.

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