What is Income Or Revenue?
What is Revenue Account In Accounting Here we will study about the Accounting Question that, “What is Income”? Revenue / Income Definition It is the price of goods sold or services rendered by the business to its customers. A business may receive Income in the form of Cash or Accounts Receivable / Debtor which is expected to be collected from customers in the form of Cash quickly in future within the Current Accounting Period. Note: T he Difference between Revenues And Expenses is Called Net Income / Net Profit of the Business for the period. Income / Revenue Calculation 1. Revenues = Cash + Accounts Receivable While According To Matching Principle GAAP , Net I ncome is calculated from the following formula: Net Income / Profits = Revenues - Expenses I ncome / Revenue Journal Entry For Example, if the Furniture sold by the business For Rs. 500000, then the sales of Furniture is the inc...