Revenue, Income, and Gain

Author Topic: Revenue, Income, and Gain  (Read 274 times)

Offline Repon

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Revenue, Income, and Gain
« on: July 09, 2015, 01:24:16 PM »
What is the difference between revenue, income, and gain?

Revenue is the amount earned from a company's main activities such as selling merchandise or providing services.

A gain results from a peripheral activity, such as selling the old delivery truck. A gain is the amount received that is in excess of the asset's carrying amount (book value). For example, if the company receives $3,000 for the truck, and its carry amount was $600, the company will report a gain of $2,400.

Income is sometimes used instead of the word revenue: some people refer to the rent they receive as rent income. Generally, accountants use the word income to mean "net of revenues and expenses." For example, a retailer's income from operations is sales minus the cost of goods sold minus operating expenses.
Senior Lecturer in Accounting
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Offline asitrony

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Re: Revenue, Income, and Gain
« Reply #1 on: July 10, 2015, 02:44:14 PM »

Very helpful for me sir,

Asit Ghosh
Senior Lecturer, TE