Revenue Definition in terms of Accounting

Revenue Definition in terms of Accounting

Revenue means the total receivable or realized from sale of goods and earnings from interest, dividend, commission, etc. Revenue is the total of money that a corporation really receives throughout a particular time, including discounts and deductions for returned sell.

Under the accrual source of accounting, revenues are recorded at the instant of delivering the service or the merchandise, even if cash is not received at the time of delivery. Often the term income is used as a substitute of revenues.

Examples of revenue accounts include: Sales, Service Revenues, Fees Earned, Interest Revenue, and Interest Income.

Revenue accounts are credited when services are completed or billed and consequently will regularly has credit balances. At the time that a revenue account is credited, the account debited may be Cash, Accounts Receivable, or Unearned Revenue depending if cash was received at the instance of the service, if the consumer was payable at the time of the service and will pay later, or if the consumer had paid in advance of the service being performed.