What Is Revenue? Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. 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.

What are sales revenues?

But the definition of sales revenue is the revenue that comes from sales of product and services, while revenue includes income generated from things not directly related to the core business, such as income generated from interest on savings or cash paid out by dividends. This is classified as non-operating income.

When revenue is Recognised as per as 9?

As per the AS 9 Revenue Recognition issued by ICAI “Revenue is the gross inflow of cash, receivables or other consideration arising in the course of the ordinary activities of an enterprise from the sale of goods, rendering of services & from various other sources like interest, royalties & dividends”.

What is not covered by as 9?

AS 9 does not deal with the following aspects of revenue recognition to which special considerations apply: Revenue arising from hire-purchase, lease agreements; Revenue arising from government grants and other similar subsidies; Revenue of insurance companies arising from insurance contracts.

What’s the difference between cost of goods sold and revenue?

It is also sometimes called revenue or sales revenue. Cost of goods sold refers to the cost of all the goods that we sold this year. Cost of goods sold is commonly abbreviated as C.O.G.S. and is also known as cost of sales. Cost of goods sold is an expense charged against sales to work out a gross profit (see definition below).

What is the gross profit minus cost of goods sold?

This would result in a gross profit of $100 (sales minus cost of sales). Cost of Goods Sold does not include general expenses such as wages and salaries to office staff, advertising expenses, etc. It is simply the direct costs of the inventory that we have sold during the year.

How to calculate gross profit from sales revenue?

First, it marks the starting point for arriving at net income. From revenue, cost of goods sold is deducted to find gross profit.Gross ProfitGross profit is the direct profit left over after deducting the cost of goods sold, or “cost of sales”, from sales revenue.

Which is the correct definition of sales revenue?

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.