Revenue

Definition

The amount a business earns from selling goods, providing services, or other ordinary activities before deducting associated expenses. Revenue is not the same as profit or cash collected.

Revenue is often called the top line because it appears near the start of the income statement. It can grow because a business sells more, charges higher prices, or shifts to a different mix of products. A sale can count as revenue before the customer pays the invoice.

Example

Company A sells 100 shirts for $20 each. It records $2,000 in revenue before subtracting costs.