What is revenue?

Revenue refers to the income that one gets from a business activity in a given period of time. Revenue can be calculated by multiplying the per unit cost of goods or services dividend by the number of units sold in given period of time.

Money earned from product sold, services provided or other contractual arrangements.

These moneys are generally recorded against related revenue costs such as sales return, markdowns, discounts and allowances and are referred to as ‘net revenue’ (as opposed to ‘gross revenue’).