Difference Between Net Income And Revenue In Accounting With Examples
Here we study the difference between Net Income / I ncome and Revenue in Accounting with Examples. This is very basic and hot topic in Accounting. Note: There is no difference between Income And Revenue. In British Accounting System, the term, “Income” is used while American Accounting System uses the term, “Revenue”. You can also read Accounting Terms to know better about these terms before reading differences between below terms. Net Income:- It is simply the Difference Between Revenues And Expenses . It is also called net profit. Income is equal to all the revenues earned by the company during the course of business - All the expe nses i ncurred by the busi ness to ear n reve nues Examples are Sales, Sales Commission, Commission Received, Royalty Payments Received, Purchases, Re nt paid, Salaries Paid Prepaid Expe nses, Advertisi ng Expe nses, etc. Mathematically,...