Difference between Revenue and Income
1.Meaning
Revenues and income both have the same meaning in business
language and both are gross inflow of economic benefit. Which term to be used
depends on the nature of business and normal industry practice?
2.Business Income
Revenue is basically a business term and can be used only
for business income where income can be used both for business income and non
business income i.e Salary income, Dividend income.
3.Net inflow
Net flow of economic benefit is calculated by deducting the
relevant business expenses from revenue and income. Net inflow in case of
revenue is known as profit where in case of income it is called net income.
4.Nonprofit organization
Nonprofit organization always uses the term income instead
of revenue because nonprofit organization are established for a charitable
purpose and not to earn profit therefore it is not appropriate the profit
related terminology in nonprofit organization.
Examples of revenues
Famous example of business income normally expressed with
income heading is dividend income, interest income, royalty income. The famous
example of revenue is sale of goods.
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