Revenue Its Main forms

Revenue is the amount which any company or business gets for providing services or goods after selling them. This revenue is earning or income source of that business organization. Every business works for production or trading in specific goods and all sales will be revenue of business and after deducting all expenses business can find net profit or loss from that trade.

Main forms of Revenue

Revenue can classify in following forms:-

1. Operating vs Non – Operating Revenue

Operating revenue is the outcome from sale of goods. If XYZ Co. sells goods and receives $ 150000 , then this amount be operating revenue of XYZ Co. but if Non-operating revenue is outcome from other sources or investments . Suppose, if same company has invested some amount in PQ Co. and gets $ 10000 as dividend so this dividend will be non operating revenue.

2. Business vs Govt. vs NGO revenue vs Professional revenue

Business revenue means total sale by business organization and also included other incomes like dividend, interest and rent .

Government revenue means all revenue like income tax, excise duty and other tax which is collected by Govt. from public and in revenue this , we also include all other revenue of Govt. departments .

NGO revenue is income from donation and subscription fees by donors

Professional revenue is income for providing professional services .

3. Top line revenue vs Bottom line revenue

Top line revenue means total revenue of business before deducting expenses and losses .

Bottom revenue is net profit which can be calculated after deducting all expenses and losses.


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Accounting Education: Revenue Its Main forms
Revenue Its Main forms
Accounting Education
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