Revenue
Definition 1
For a company, this is the total amount of money received by the company for
goods sold or services provided during a certain time period. It also includes
all net sales, exchange of assets; interest and any other increase in
owner’s equity and is calculated before any expenses are subtracted. Net
income can be calculated by subtracting expenses from revenue. In terms of
reporting revenue in a company's financial statements, different companies
consider revenue to be received, or "recognized", different ways. For
example, revenue could be recognized when a deal is signed, when the money is
received, when the services are provided, or at other times. There are rules
specifying when revenue should be recognized in different situations for
companies using different accounting methods, such as cash basis and
accrual basis.
