As defined by Merriam-Webster, Revenue is the total income produced by a given source; the gross income returned by an investment; the yield of sources of income (as taxes) that a political unit (as a nation or state) collects and receives into the treasury for public use; and/or a government department concerned with the collection of the national revenue. Simply speaking, revenue is the amount
. of money earned.Revenue can be called different names in different countries, such as in the United Kingdom, revenue is called turnover.Companies can have various sources to earn revenue, including the sale of goods and services, as well as earning money from investments the company has placed.Non-profit organizations refer to their revenue as gross receipts. They gain revenue from donations made by various outside sources, as well as, grants, fundraisers, investments and other government funding.The government earns it's revenue from collecting taxes, fees placed on agencies and other companies, licensing and other fees. Depending on the type of business, Revenue has to be reported to the government periodically. Once the revenue is reported to a government agency, this is where the government is able to make their revenue from a business by collecting taxes and fees.Revenue is calculated prior to any expenses, employee payroll, operating costs or any other bills a company may have to pay.Total revenue or (TR) is the calculation of the total amount of money received by a business from the sale of its goods and services to outside sources; equal to the total spent for the production of those goods produced by the business (P); equal to the quantity sold (or demanded) multiplied by the price at which it sold(Q). So TR=P X Q Generally, revenue is calculated by the amount of goods and services times the amount the goods and services were sold for. More reference links: http://www.merriam-webster.com/dictionary/revenue http://www.investopedia.com/ask/answers/09/how-companies-calculate-revenue.asp#axzz1hC59erf6
