Elements of Accountancy · Ch 1 — Introduction to Accounting
Revenues
1.5.7
Revenues
Revenue is the income a business earns from its main operating activities. For most businesses, the primary source of revenue is selling goods or providing services to customers — this is called sales revenue. But revenue is not limited to sales alone.
Other common items of revenue include:
- Commission earned
- Interest received
- Dividend income
- Royalties
- Rent received
All these are collectively referred to as revenue or income.
Important
Revenue is the gross inflow of economic benefits (cash, receivables, or other assets) arising from the ordinary operating activities of a business. It increases the owner's equity (capital) without any additional contribution by the owner. …