Revenue is the difference between the net income a firm earns and the expenses it incurs in a given time period.

Question

Quizplus · Accepted Answer

Revenue is the total amount of money a firm earns from its sales or services in a given time period, before deducting any expenses. Net income is the revenue minus all expenses incurred by the firm, including taxes, wages, and cost of goods sold. Therefore, revenue alone cannot represent the difference between net income and expenses.

Revenue Is the Difference Between the Net Income a Firm