Revenues represent the amount of money earned from the sale of goods and services during a period, before deducting any expenses or costs. It is the sales price of the goods and services sold, not necessarily the amount of cash received from those sales. Cost of goods sold and expenses are deducted from revenues to calculate net profit.

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Revenues Indicate

Question 29

Multiple Choice

Revenues indicate:

A) the sales price of goods and services sold during a period.
B) how much cash was received from sales during a period.
C) the cost of resources consumed in producing and selling goods and services sold during a period.
D) the net profit earned during a period.

Correct Answer: