What is Revenue?
Revenue is the total amount of money earned by a company from the sale of goods and services. The ultimate goal of any new business is to generate revenue as quickly and efficiently as possible while keeping production or service expenses as low as reasonably practicable. Calculating profit is done by deducting a company's expenses from its revenue. There are two types of revenue:
- Operating revenue is the primary operations of a business that generate the majority of its revenue. It can include the sale of good for cash or cash equivalent, rent that is paid to landlords from tenants, and professional services that derive income – providing a service to customers.
- Non-operating revenue is income that does not come from operations, such as earning interest and selling assets or equipment.