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.