Net income can be calculated by subtracting expenses from revenue.
In terms of reporting revenue in a company's financial statements, different companies consider revenue to be received, or "recognized", different ways. For example, revenue could be recognized when a deal is signed, when the money is received, when the services are provided, or at other times. There are rules specifying when revenue should be recognized in different situations for companies using different accounting methods, such as cash basis and accrual basis accounting.
Use revenue in a sentence
“ Thanks to the new management team I've hired and the new business plan we are moving forward with, our revenue from this point on should go through the roof. ”
“ If the marginal cost of producing another unit exceeds the marginal gain from selling it then a company should not increase production volume, because although this will increase revenue, it will decrease profit. ”
“ After selling 20 jars of jam for $5 a piece, she was quickly able to calculate her revenue at $100. While she would have to deduct expenses, she was able to quickly determine the amount she was bringing in. ”