Definition 1
For a company, this is the total
amount of
money received by the company for
goods sold or
services provided during a certain time
period. It also includes all
net sales,
exchange of
assets;
interest and any other increase in
owner's equity and is calculated before any
expenses are subtracted.
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.
Definition 2
For the government, the increase in
assets of governmental
funds that do not increase
liability or
recovery of
expenditure. This revenue is obtained from
taxes,
licenses and
fees.
