Difference between revisions of "Revenue"

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== The top line ==
== The top line ==
A [[corporation]]'s total revenue (or total sales) is always the first line on its balance sheet but is then often broken up into categories below that based on what each business division earned over the period.<ref>{{cite web|url=http://beginnersinvest.about.com/cs/investinglessons/l/blrevenue.htm|name=Total Revenue or Total Sales Investing Lesson 4 - Analyzing an Income Statement|org=BeginnersInvest|date=August 5, 2008}}</ref>
A corporation's total revenue (or total sales) is always the first line on its balance sheet but is then often broken up into categories below that based on what each business division earned over the period.<ref>{{cite web|url=http://beginnersinvest.about.com/cs/investinglessons/l/blrevenue.htm|name=Total Revenue or Total Sales Investing Lesson 4 - Analyzing an Income Statement|org=BeginnersInvest|date=August 5, 2008}}</ref>


However, not all companies agree on when revenue should be reported or even what constitutes it. Some, for example, recognize and book revenue when a deal is signed, others when the money is received, still others when services or goods are delivered.<ref>{{cite web|url=http://www.investorwords.com/4254/revenue.html|name=Revenue|org=InvestorWords.com|date=August 4, 2008}}</ref> Companies also recognize revenue differently depending on which accounting method they use.
However, not all companies agree on when revenue should be reported or even what constitutes it. Some, for example, recognize and book revenue when a deal is signed, others when the money is received, still others when services or goods are delivered.<ref>{{cite web|url=http://www.investorwords.com/4254/revenue.html|name=Revenue|org=InvestorWords.com|date=August 4, 2008}}</ref> Companies also recognize revenue differently depending on which accounting method they use.

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