Revenue

Revenue is the income a business earns from its normal operations, such as selling goods or services.

Explanation:
Revenue is often called the “top line” because it’s the first line on an income statement. It does not include expenses.
Types of revenue:

• Operating revenue: Core business activities (e.g., sales)
• Non-operating revenue: Secondary sources (e.g., interest income)

Example:
A bakery selling cakes earns $50,000 a month. That $50,000 is its revenue.

Importance:
Revenue is the starting point for analyzing profitability and business performance.

Common Confusion:
Revenue is not profit. Profit is what remains after expenses are subtracted.