Define revenue.

• A. The money you get from selling products
• B. The profit after costs
• C. The total market value of a company
• D. The money spent on operations

Answer: (A)

Revenue is the money a business earns from selling goods or services. It represents the top line—total income from sales before any costs are subtracted—and is often called turnover. For example, selling 100 items at $10 each yields revenue of $1,000. Revenue includes all sales income, whether paid in cash or on credit, and is recorded before deductions like returns or discounts. It’s different from profit, which is what remains after costs and expenses are taken out. It’s also not the company’s market value, which reflects investors’ assessment of the business, nor is it the money spent on operations, which are the costs the business incurs. So the money you get from selling products or services defines revenue.