ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Revenue is the money a company earns from the sale of its products and services. Cash flow is the net amount of cash being transferred into and out of a company.

Detailed explanation-2: -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.

Detailed explanation-3: -The difference between sales and revenue is that sales is a part of revenue, but not necessarily the only source of revenue. Sales is the revenue that is earned from primary business operations, which is the sale of goods and services.

Detailed explanation-4: -What is total revenue? Total revenue, also known as total sales, refers to the total income that your company generated from all sales of goods or services. If you own an ice cream shop, for example, your total revenue would include all ice cream sales, not just the sales from one flavor or type of sundae.

Detailed explanation-5: -For example, income generated by interest on savings is considered revenue, but it’s not sales revenue. Sales revenue, strictly speaking, is income that’s generated from the sale of a company’s products or services. While sales are always considered a revenue stream for any business, not all revenue comes from sales.