In accounting terminology, the term Revenue refers to the amount of money taken in by a company for its goods and services during a specific time period. Revenue will be calculated before factoring in any costs or expenses.
For example, Revenue makes up the cash flow element for a company and generally also includes items such as the owner’s equity and net sales. Some companies receive Revenue from interest, dividends and royalties paid out from other companies. Nevertheless, revenue is always calculated before expenses and is listed on the top line of the company’s income statement. Being on the top line of the income statement, Revenue is the number from which all expenses are then subtracted from. By reading lower, one eventually arrives at the “bottom line” of the income statement which shows the net income for the time period.