In accounting , revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business . Commercial revenue may also be referred to as sales or as turnover . Some companies receive revenue from interest , royalties , or other fees . "Revenue" may refer to income in general, or it may refer to the amount, in a monetary unit , earned during a period of time, as in "Last year, company X had revenue of $ 42 million". Profits or net income generally imply total revenue minus total expenses in a given period. In accounting , revenue is a subsection of the equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement . This is to be contrasted with the "bottom line" which denotes net income (gross revenues minus total expenses).
23-568: The Young Foundation is a not-for-profit , organisation driving community research and social innovation . It is named after Michael Young , the British sociologist and social activist who created over 60 organisations including the Open University , Which? , Economic and Social Research Council , the School for Social Entrepreneurs , and Language Line . The Institute of Community Studies (ICS)
46-426: A NPO as they are not formed explicitly for the public good as an NPO must be, and NFPOs are considered "recreational organizations", meaning that they do not operate with the goal of generating revenue as opposed to NPOs. An NFPO does not have the same obligation as an NPO to serve the public good, and as such it may be used to apply for tax-exempt status as an organization that serves its members and does not have
69-434: A business's primary activities are reported as sales , sales revenue or net sales . This includes product returns and discounts for early payment of invoices . Most businesses also have revenue that is incidental to the business's primary activities, such as interest earned on deposits in a demand account . This is included in revenue but not included in net sales. Sales revenue does not include sales tax collected by
92-507: A government or government agency. Two common accounting methods , cash basis accounting and accrual basis accounting , do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or on International Financial Reporting Standards . In a double-entry bookkeeping system , revenue accounts are general ledger accounts that are summarized periodically under
115-404: A series of bestsellers which changed attitudes to a host of social issues, including urban planning (leading the movement away from tower blocks), education (leading thinking about how to radically widen access) and poverty. Young pioneered ideas of public and consumer empowerment both in private markets and in public services, some of which are only now becoming mainstream (for example NHS Direct,
138-437: Is a legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives. An NFPO does not earn profit for its owners, as any revenue generated by its activities must be put back into the organization. While not-for-profit organizations and non-profit organizations (NPO) are distinct legal entities, the terms are sometimes used interchangeably. An NFPO must be differentiated from
161-415: Is from something other than its core operations. The combination of all the revenue-generating systems of a business is called its revenue model . While the current IFRS conceptual framework no longer draws a distinction between revenue and gains, it continues to be drawn at the standard and reporting levels. For example, IFRS 9.5.7.1 states: "A gain or loss on a financial asset or financial liability that
184-407: Is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers. Fundraising revenue is income received by a charity from donors etc. to further its social purposes. In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by
207-446: Is measured at fair value shall be recognised in profit or loss ..." while the IASB defined IFRS XBRL taxonomy includes OtherGainsLosses, GainsLossesOnNetMonetaryPosition and similar items. Revenue is a crucial part of financial statement analysis. The company's performance is measured to the extent to which its asset inflows (revenues) compare with its asset outflows ( expenses ). Net income
230-466: Is printed. This is recorded as an advance to the retail bank together with a corresponding currency in circulation expense entry, that is, the income derived from the Official Cash rate payable by the retail banks for instruments such as 90-day bills. There is a question as to whether using generic business-based accounting standards can give a fair and accurate picture of government accounts, in that with
253-467: Is the result of this equation, but revenue typically enjoys equal attention during a standard earnings call . If a company displays solid "top-line growth", analysts could view the period's performance as positive even if earnings growth, or "bottom-line growth" is stagnant. Conversely, high net income growth would be tainted if a company failed to produce significant revenue growth. Consistent revenue growth, if accompanied by net income growth, contributes to
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#1732855051216276-590: The Third Age , Economic and Social Research Council , National Extension College , National Consumer Council , Open College of the Arts , Language Line and School for Social Entrepreneurs . It was the commercial sale of Language Line to a venture capital company that provided most of the funding for the establishment of the School for Social Entrepreneurs . Other organisations Young created pioneered new approaches to funerals and baby-naming, neighbourhood democracy and
299-635: The UK and abroad, with an emphasis on combining research and practical application. During the second half of the 20th century Michael Young was one of the world’s most creative and influential social thinkers and doers. After 1945 he helped shape the UK’s new welfare state. In the early 1950s he set up the Institute of Community Studies and used it as a base for research and action. Together with collaborators including Peter Willmott , Peter Townsend and many others, he wrote
322-625: The arts. He was described by Harvard ’s Daniel Bell as ‘the world’s most successful entrepreneur of social enterprises’. The Young Foundation has continued to incubate new social enterprises. For example it established the Social Innovation Exchange in 2007 which spun out as a separate organization in 2013. The Young Foundation is currently involved in different areas including health and well-being, place-based work, inequality and support for young people. Not-for-profit A not-for-profit or non-for-profit organization ( NFPO )
345-590: The association's digital media outlets. Business revenue is money income from activities that are ordinary for a particular corporation, company, partnership, or sole-proprietorship. For some businesses, such as manufacturing or grocery , most revenue is from the sale of goods. Service businesses such as law firms and barber shops receive most of their revenue from rendering services. Lending businesses such as car rentals and banks receive most of their revenue from fees and interest generated by lending assets to other organizations or individuals. Revenues from
368-436: The business. Other revenue (a.k.a. non-operating revenue) is revenue from peripheral (non-core) operations. For example, a company that manufactures and sells automobiles would record the revenue from the sale of an automobile as "regular" revenue. If that same company also rented a portion of one of its buildings, it would record that revenue as "other revenue" and disclose it separately on its income statement to show that it
391-586: The goal of generating profit. An example of this is a sports club , which exists for the enjoyment of its members and thus would function well as an NFPO, with revenue being re-invested into improving the organization. These organizations typically file for tax exemption in the United States under section 501(c)(7) of the Internal Revenue Code as social clubs. Common ventures for which NFPOs are established include: Charities, as NFPOs, function under
414-448: The heading "revenue" or "revenues" on an income statement . Revenue account-names describe the type of revenue, such as "repair service revenue", "rent revenue earned" or "sales". For non-profit organizations , revenue may be referred to as gross receipts , support , contributions , etc. This operating revenue can include donations from individuals and corporations, support from government agencies, income from activities related to
437-544: The organization's mission , income from fundraising activities, and membership dues. Revenue (income and gains) from investments may be categorized as "operating" or "non-operating"—but for many non-profits must (simultaneously) be categorized by fund (along with other accounts). For non-profits with substantial revenue from the dues of their voluntary members: non-dues revenue is revenue generated through means besides association membership fees. This revenue can be found through means of sponsorships , donations or outsourcing
460-415: The premise that any revenue generated should be used to further their charitable missions rather than distribute profits among members. This revenue might come from donations, fundraising, or other activities undertaken to support their charitable cause. Revenue In general usage, revenue is the total amount of income by the sale of goods or services related to the company's operations. Sales revenue
483-611: The spread of after-school clubs and neighbourhood councils can all be traced to his work). Young coined the word "meritocracy" and published the satire The Rise of the Meritocracy in 1958. Family and Kinship in East London shone light the role of the family in working class communities. Young's greatest legacy was institution building. He initiated, and in some cases directly created, dozens of new institutions including: Open University , Which? , International Alert , University of
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#1732855051216506-503: The value of an enterprise and therefore the share price. Revenue is used as an indication of earnings quality. There are several financial ratios attached to it: Government revenue includes all amounts of money (i.e., taxes and fees) received from sources outside the government entity. Large governments usually have an agency or department responsible for collecting government revenue from companies and individuals. Government revenue may also include reserve bank currency which
529-489: Was set up by Michael Young in 1953. The ICS is a research institute which combined academic research and practical social innovation. In 2005, it merged with the Mutual Aid Centre and was renamed The Young Foundation, in honour of its founder, Michael Young . In both current and previous incarnations, The Young Foundation has been instrumental in leading research, driving public debate, and implementing social innovation in
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