ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Sales revenue is the income received by a company from its sales of goods or the provision of services. In accounting, the terms “sales” and “revenue” can be, and often are, used interchangeably to mean the same thing. It is important to note that revenue does not necessarily mean cash received.

Detailed explanation-2: -Sales revenue is a company’s income generated through the sale of goods or services. The figure is usually reported for a fixed period-generally by month, quarter, or year. There are two types of sales revenue: gross and net. You might see both on an income statement.

Detailed explanation-3: -Revenue should not be recognised until cash is received by the seller or his agent. Revenue from such sales should not be recognised until goods are delivered. However, when experience indicates that most such sales have been consummated, revenue may be recognised when a significant deposit is received.

Detailed explanation-4: -Types of revenue include: The sale of goods, products, or merchandise. The sale of services, such as consulting. Rental income from a commercial property (notice the use of “income”) The sale of tickets to a concert. Interest income from lending.

Detailed explanation-5: -Sales revenue includes all sales of products and services but does not necessarily count those sales in real time. Using our example above, Roosevelt’s sold and received payment for 40 bears in June at $25 a bear for a total of $1, 000. Let’s say Roosevelt also mended five bears at a cost of $20 a bear.