Definition Of Revenue Vs Sales
Revenue does not necessarily mean cash received.
Definition of revenue vs sales. Although revenue is nearly always the larger figure it. Sales encompass the monetary value received from the sale of products and services to the customers. The definition of sales and revenue in business is one and the same. For instance you might work in the field of car sales.
Revenue vs sales sales are a subset of revenue and can be defined as the economic price paid by the customers for a product or service offered by the business. While sales are a source of revenue a company may include other revenue sources like interest on loans rent on the property etc. So the difference between sales and revenue is that ultimately a sale is something that you do in order to increase your overall business revenue. Net revenue from sales is what you get.
In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. Your revenue is the money you make from sales. Sales may be defined as prices paid by customers while revenue signals the overall money a business generates during a given time period. Revenue is the total amount of income generated by the sale of goods or services related to the company s primary operations.
Gross revenue is your total sales dollars. The key difference between revenue vs sales is that revenue refers to the total income generated by any business entity by selling their goods or by providing their services including other income during the normal course of its operations whereas the sales refers to the proceeds received by the company against the selling their goods or by providing their services. Revenue also known simply as sales does not deduct any costs or.