Fundamentals

Revenue

Income recognized from ordinary business activities under accounting rules, before most expenses. It is not necessarily cash collected during the same period.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

Selling 1,000 units at $100 produces $100,000 revenue before returns and other accounting adjustments; revenue is not profit.

IMPORTANT DISTINCTION

Accrual revenue need not be cash collected. Net versus gross presentation and recognition timing affect comparisons.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide

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