ECONOMICS

Detailed explanation-1: -Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement.

Detailed explanation-2: -Some companies inaccurately use the terms sales and revenue interchangeably. However, while sales are revenue, all revenue doesn’t necessarily derive from sales. For many companies, they are indeed the same. But some companies routinely derive additional revenue from their business operations.

Detailed explanation-3: -Although revenue and sales are considered the same in many cases, there is still a slight difference between revenue vs. sales. Revenue is the total amount of money generated by a company. Sales are the total consideration accrued from selling goods or services by a company.

Detailed explanation-4: -Net profit is the money a business earns in a particular period from selling its products after paying all of its expenses.