What is defined as the total amount of money made in a business over one year?

What is defined as the total amount of money made in a business over one year?

• A. Net Income
• B. Gross Revenue
• C. Revenue
• D. Operating Income

Answer: (C)

The term that describes the total amount of money made in a business over one year is revenue, which encompasses all cash inflows generated from the sale of goods or services before any deductions, such as expenses or taxes. Revenue serves as a crucial indicator of a company's effectiveness in generating sales and is typically reported on the income statement. The distinction between revenue and other financial metrics like gross revenue or net income is important. Gross revenue refers to the total sales before any deductions, while revenue is often used interchangeably in this context to denote overall sales for a specific period. Operating income, on the other hand, is the profit a company makes from its regular business operations, excluding costs associated with non-operational parts of the business, taxes, and interest payments, making it a narrower measure than revenue.

The term that describes the total amount of money made in a business over one year is revenue, which encompasses all cash inflows generated from the sale of goods or services before any deductions, such as expenses or taxes. Revenue serves as a crucial indicator of a company's effectiveness in generating sales and is typically reported on the income statement.

The distinction between revenue and other financial metrics like gross revenue or net income is important. Gross revenue refers to the total sales before any deductions, while revenue is often used interchangeably in this context to denote overall sales for a specific period. Operating income, on the other hand, is the profit a company makes from its regular business operations, excluding costs associated with non-operational parts of the business, taxes, and interest payments, making it a narrower measure than revenue.