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What is the difference between revenue and profit?


Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue is often referred to as the top line because it sits at the top of the income statement. The revenue number is the income a company generates before any expenses are taken out.

For example, with a shoe retailer, the money it makes from selling shoes before accounting for any expenses is its revenue. If the company also has income from investments or a subsidiary company, that income is not considered revenue; it does not come from the sale of shoes. Additional income streams and various types of expenses are accounted for separately.


Accrued Revenue


Unearned Revenue 


Profit


Example: Comparing Revenue and Profit


The Bottom Line



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