In business, revenue is that income that a company obtains from its normal business activities which is generally from the sales of goods and services to customers. In many countries, such as the UK, revenue is termed as turnover. Some companies collect revenue from interest, dividends or royalties paid to them by many other companies. Revenue refers to business income in general, or it may refer to the amount, in monetary terms, received during a period of time. For example "Previous year, Company Y had revenue of $45 million." To get exact profits one must calculate total revenue minus total expenses in a given period. In accounting terminology, revenue is often referred to as the "top line" as its position on the income statement at the top.
For non-profit organizations, annual revenue may be termed as gross receipts. This revenue mostly includes donations from corporations and individuals, income from activities related to the organization's mission, support from government agencies, membership dues, and income from fundraising activities, and financial investments such as stock shares in companies.
In normal usage, revenue is income received by a company in the form of cash or cash equivalents. Revenue may be categorized in different forms as per its nature of collection like sales revenue or revenues is income received from selling goods or services, Tax revenue is income that a government receives from taxpayers.
In more official usage, revenue is a computation or estimation of periodic income based on the rules established by a government or government agency or particular standard accounting practice. Two widespread accounting methods are cash basis accounting and accrual basis accounting that do not use the similar process for measuring revenue.
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