Home Investing Dictionary Investment Term Revenue
Written by Kenny Foo   
Wednesday, 04 March 2009 12:44

Revenue or turnover is the gross income that a company receives from its normal business activities, usually from the sales of goods and services to customers,

including discounts and deductions for returned merchandise. Since revenue or turnover is the first figure in the income statement ,sometimes, it is also referred as top line figure in income statement. This is contrasted with bottom line which denotes net income in the last position of income statement. Revenue or turnover will be deducted with expenses such as cost of goods sold ( COGS ), overhead and interest expense to obtain net profitin the income statement. In abbreviation, revenue or turnover is also known as REVs. Revenue or turnover will be calculated based on a financial period, usually in quarterly basic or yearly basic. For a example of revenue, Corporation A received $100,000 sales from its goods, $100,000 sales from its services, $50,000 discount from its merchandise for this quarter. Quarterly revenue or turnover for corporation A for this quarter is $250,000 by adding up all the gross income received in this quarter..

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Last Updated ( Thursday, 05 March 2009 11:34 )
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