Question

What do accountants mean by the term revenue?

Answer 1

Revenue means gross income which induces income from operation. All the sale of services and goods are considered as revenue. In terms of an accountant any income will be considered as revenue but non operating income are not considered as revenue because it is adjusted after income from operation in income statement.

Accountants consider every income as revenue and they credit the same into Revenue account.but for reporting purposes, it is very important to segregate all the income from operation and other income.

This above answer is based on US GAAP,but in India revenue includes other income such as interest income etc..

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