Revenue and income are two related but distinct financial concepts.
Revenue refers to the total amount of money that a business earns from its sales, services, or other activities over a specific period. It is the top line of a company’s income statement and does not take into account any expenses or costs associated with generating that revenue.
Income, on the other hand, refers to the amount of money that a business or an individual earns after deducting expenses from their revenue. Income is the bottom line of a company’s income statement and represents the profit or loss generated by the business over a specific period.
While revenue and income are related, they are not interchangeable. Revenue is the starting point for calculating income, but it does not necessarily reflect the profitability of a business or an individual. It is possible for a business to have high revenue but low income if its expenses are high. Similarly, it is possible for a business to have low revenue but high income if its expenses are low.
In summary, revenue is the total amount of money earned by a business, while income is the amount of money earned after deducting expenses from revenue.
