Post by account_disabled on Mar 9, 2024 8:11:05 GMT
The because while revenue also called sales represents money from customers earnings represent what is left over after using that income to pay company expenses. Are revenue and profit the same Profit basically means the same as income because it simply represents after you have paid all the bills from the money received from your customers. And finally are income and income the same Some people may use the term revenue to represent sales revenue but from an accounting terminology standpoint revenue is more likely to mean operating income.
Operating income is slightly different from revenue or profit because the cost of goods and operating B2B Email List expenses are excluded from sales but unlike revenue or profit operating income does not include taxes and other nonoperating expenses. Example of Cash Recipient A good example of a cash sale transaction occurs at the lemonade stand that your neighbors son Timmy sets up every weekend throughout the summer. Its a simple operation selling a simple product at a simple price. Timmy sells a glass of lemonade for IDR and it goes without saying that you have to immediately pay Timmy IDR to receive a glass of lemonade. In this example each sale generated by Timmys lemonade stand generates a cash receipt.
Timmy doesnt sell you a glass of lemonade on credit with a due date one month later instead the cash receipt is recorded immediately with a sales acknowledgment debit cash account credit sales account. For example you have a large television distributor and you sell many different brands. You continually buy your television from several different manufacturers and each of them has extended your credit terms that allow you to order your television when you need it so you can pay the bill within days. While the manufacturer will acknowledge the sale to your business after shipping the television to you this.
Operating income is slightly different from revenue or profit because the cost of goods and operating B2B Email List expenses are excluded from sales but unlike revenue or profit operating income does not include taxes and other nonoperating expenses. Example of Cash Recipient A good example of a cash sale transaction occurs at the lemonade stand that your neighbors son Timmy sets up every weekend throughout the summer. Its a simple operation selling a simple product at a simple price. Timmy sells a glass of lemonade for IDR and it goes without saying that you have to immediately pay Timmy IDR to receive a glass of lemonade. In this example each sale generated by Timmys lemonade stand generates a cash receipt.
Timmy doesnt sell you a glass of lemonade on credit with a due date one month later instead the cash receipt is recorded immediately with a sales acknowledgment debit cash account credit sales account. For example you have a large television distributor and you sell many different brands. You continually buy your television from several different manufacturers and each of them has extended your credit terms that allow you to order your television when you need it so you can pay the bill within days. While the manufacturer will acknowledge the sale to your business after shipping the television to you this.