The amount that a business earns by selling goods or providing services is called revenue. It includes both cash received for goods sold and services rendered and accounts receivable for goods sold and services rendered on credit. Revenues that appear in the trial balance are of the following two kinds: Revenue earned from routine activities of the business, such as the revenue generated from the sale of goods and rendering services to customers, is known as direct revenue. Direct revenue is credited to the trading account. Revenues earned through activities other than the routine activities of the business are called indirect revenues. The following items are included in indirect revenues:Revenue Definition
Direct Revenue
Indirect Revenue
Indirect Revenue Examples
Direct vs Indirect Revenue FAQs
The amount that a business earns by selling goods or providing services is called revenue.
Revenue earned from routine activities of the business, such as the revenue generated from the sale of goods and rendering services to customers, is known as direct revenue. It is credited to the Trading Account.
Revenues earned through activities other than the routine activities of the business are called indirect revenues.
Revenue is the money your organization receives from the sale of its products or services. Revenue is calculated by multiplying the number of sales and the price of each sale (revenue = sales x average price of service or sales price).
Revenue is the lifeblood of every business. Revenue can tell you a lot about your business, including what you need to do to increase profits. Increasing your revenue will increase your profits.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
