what is revenue

Revenue is the total amount of income generated by a companys primary operations, typically from the sale of goods or services. It is also known as sales or turnover. Revenue can be calculated by multiplying the average sales price by the number of units sold. It is the top line or gross income figure from which costs are subtracted to determine net income. Revenue can also refer to income in general or the amount earned during a period of time. In accounting, revenue is a subsection of the Equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement, in contrast to the "bottom line" which denotes net income (gross revenues minus total expenses) . Revenue is used by finance professionals to determine profitability and is found on several financial statements.