Revenue
Definition
The income a business earns from its normal activities — mainly sales of goods and services — before any expenses are deducted. Also called the top line, because it sits at the top of the income statement.
Related Terms in Core Accounting
Expense
A cost incurred by a business to earn revenue, such as rent, salaries, utilities and supplies. Expenses are matched to the period in which they help generate revenue and reduce profit.
Current vs Non-Current Assets
The split of assets by how soon they are expected to be converted to cash or used. Current assets (cash, receivables, inventory) are expected within a year; non-current assets (property, equipment, long-term investments) are held longer.
Long-Term Liabilities
Obligations due beyond one year, such as long-term loans, bonds, lease liabilities and deferred tax. They finance longer-term assets and are shown separately from current liabilities on the balance sheet.
Contra Asset
An account that reduces the value of a related asset, carrying a credit balance against the asset's debit balance. Accumulated depreciation and the allowance for doubtful accounts are common examples.
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