What is revenue in simple words?
Definition of revenue 1 : the total income produced by a given source a property expected to yield a large annual revenue. 2 : the gross income returned by an investment.
What are revenues give examples?
Examples of revenue Government revenue: In federal, state and local government, revenue refers to the money an entity receives from fines/penalties, property and sales taxes, income taxes, corporate payroll contributions, rental fees, intergovernmental transfers and securities sales.
What is revenue on a balance sheet?
Retained earnings make up part of the stockholder’s equity on the balance sheet. Revenue is the income earned from the sale of goods or services a company produces. Retained earnings are the amount of net income retained by a company.
Is revenue an asset or liabilities?
For accounting purposes, revenue is recorded on the income statement rather than on the balance sheet with other assets. Revenue is used to invest in other assets, pay off liabilities, and pay dividends to shareholders. Therefore, revenue itself is not an asset.
What are revenues on a balance sheet?
Is revenue a liability or asset?
The company classifies the revenue as a short-term liability, meaning it expects the amount to be paid over one year for services to be provided over the same period. Unearned revenue can provide clues into future revenue, although investors should note the balance change could be due to a change in the business.
Is revenue a liability or equity?
Account Types
| Account | Type | Debit |
|---|---|---|
| REPAIR EXPENSE | Expense | Increase |
| RETAINED EARNINGS | Equity | Decrease |
| RETIREMENT CONTRIBUTION PAYABLE | Liability | Decrease |
| REVENUE | Revenue | Decrease |
Is revenue an expense?
Revenue describes income earned through the provision of a business’s primary goods or services. An expense is a cost incurred in the process of producing or offering a primary business operation.
Is revenue an income?
Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue, also known as gross sales, is often referred to as the “top line” because it sits at the top of the income statement. Income, or net income, is a company’s total earnings or profit.