Revenue Transactions

Revenue Transactions

Revenue Transactions are a transaction that is generally of a short-term nature and is only expected to benefit the current period. Revenue transactions appear in the profit and loss account of the period. The business transactions, which provide benefits or supplies services to a business concern for an accounting period only, are known as revenue transactions. Revenue transactions can be Revenue Expenditure or Revenue Receipt.

A revenue transaction is one that deals with sales and also dealing with current assets and liabilities, such as:

  • sales of inventory and costs of inventory acquisition and/or creation
  • short-term receivables and payables
  • other monies received from other sources such as rents and dividends

These types of transactions will show up on cash flow and revenue stream reports.