The-definition.com

Definition

Revenues

Revenues are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income. Generally, revenues result form selling merchandise, performing services, renting property, and lending money. Common sources of revenue are: sales fees, services, commissions, interest, dividends, royalties, and rent.

Revenues usually result in an asset. They may arise from different sources and are called various names depending on the nature of the business. Campus pizza, for instance, has two categories of sales revenues pizza sales and beverage sales.

Share it:  Cite

More from this Section

  • Asset Turnover Ratio
    The asset turnover ratio analyzes the productivity of a company’s assets. It tells us ...
  • Financial accounting
    Financial accounting refers to the field of accounting that provides economic and financial ...
  • Materials quantity variance
    Materials quantity variance is the difference between the actual quantity times the standard ...
  • Just-in-time (JIT) inventory
    Just-in-time (JIT) inventory is a inventory system in which goods are manufactured or ...
  • Grant Deed
    Grant Deed is a legally binding contract that transfers ownership of real estate from ...