Anonymous
Anonymous asked in Science & MathematicsMathematics · 3 years ago

# is revenue the same as profit?

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• Anonymous
3 years ago

Both of them are an income.

revenues is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. Some companies also receive revenue from interest, dividends or royalties paid to them by other companies. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, received during a period of time, as in "Last year, Company X had revenue of \$32 million."

Gross Income is commonly defined as the amount of a company's or a person's income before all deductions or any taxpayer’s income, except that which is specifically excluded by the Internal Revenue Code, before taking deductions or taxes into account.

• Anonymous
3 years ago

Let's suppose you own a business.

Revenue is the amount you receive from your sales. So, let's say you sold 20 pizzas at the cost at 1 dollar each. So, your revenue (or R) would be 20 dollars.

However, there is also cost or a set amount that you need to pay, such as rent. Suppose the rent is 10 dollars.

So, you would be left with 20-10 dollars = 10 dollars. 10 dollars is your profit.

The general equation is Profit = Revenue - Cost.