Revenue & Expenditure

Revenue

The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income. A government department responsible for the collection of government revenue.

Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold.

Revenue is also known as "REVs."

Revenue is the amount of money that is brought into a company by its business activities. In the case of government, revenue is the money received from taxation, fees, fines, inter-governmental grants or transfers, securities sales, mineral rights and resource rights, as well as any sales that are made.

For the government, the increase in assets of governmental funds that do not increase liability or recovery of expenditure. This revenue is obtained from taxes,licenses and fees.

There are many types of revenue.

Sales Revenue-making money from selling goods or services.
Tax Revenue-making money from taxpayers.
Interest Revenue-making money from an investment, usually from a bank account.
Dividend Revenue-if you have a stock in a company that pays dividends, that's considered revenue.
Lease Revenue-making money from renting things out, i.e. car rental, office rental, etc.
Royalty Revenue-you make money when other people use your asset. In the music industry, for example, record companies can charge a royalty to internet radio stations that play their songs.

Expenditure

Payment of cash or cash-equivalent for goods or services, or a charge against available funds in settlement of an obligation as evidenced by an invoice,receipt,voucher,or other such document.See also revenue expenditure,capital expenditure.

The total amount of money that a government,organization,or person spends during a particular period of time.

READ MORE