What is the difference between "INCOME" and "REVENUE" in accounting?

Question

Are the the same?

Answer 1

In accounting, "income" is almost always used in the context of "net income." Net income is the same as profit.  One of the major financial statements in accounting is the "Income Statement."  The basic format of this statement is Revenues minus Expenses equals Net Income.  So assuming this is the income to which you are referring, Revenue and Income are NOT the same.

For example, if your business sold T-shirts at a price of $20 and the T-shirt cost your business $8.  Your revenues would be $20, your expenses $8, and you Net income $12 ($20-$8).  This example assumes that your business only made and sold 1 T-shirt for simplicity.

Answer 2

IASB definition of revenue:

Revenue: The gross inflow of economic benefits (cash, receivables, other assets) arising from the ordinary operating activities of an enterprise (such as sales of goods, sales of services, interest, royalties, and dividends). [IAS 18.7]

IASB definition of income:

Income. Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. [F.70]

So as you can see, there is not much difference, except that revenue is mostly used for sales and turnover whereas income is rarely used in that respect. And the bottom line is usually Net Income but never Net revenue.

Answer 3

There is no difference . Income and revenue are the same only revenue sounds better.

Answer 4

Income means profit. That is the last column that you will see at the income statement.

Revenue means sales. That is the first column that you will see at the income statement.

Therefore revenue is a subset of income, because it is used to measure income.

Formula : Revenue - operating expenses = Income (service business)

OR  Revenue - cost of goods sold - operating expenses = Income (trading business)

Answer 5

revenue is income generated from an investment or income from taxes licenses.

Income is money ect recieved in a given period like wages, rent and taxes