What is the difference between sales revenue and revenue?

Sales revenue and revenue are terms often used interchangeably. But the definition of sales revenue is the revenue that comes from sales of product and services, while revenue includes income generated from things not directly related to the core business, such as income generated from interest on savings or cash paid out by dividends.

Does Revenue mean cash received?

It is important to note that revenue does not necessarily mean cash received. A portion of sales revenue may be paid in cash and a portion may be paid on credit, through such means as accounts receivables. Sales revenue can be shown on the income statement by either the gross revenue amount or net revenue.

Why is calculating sales revenue important?

Calculating sales revenue assists with this process. Clarifying resource delegation: If a company calculates the individual sales revenue of each of its main products or services, it may determine which products are most profitable and which are not providing sufficient revenue.

What are expenses below sales revenue?

All expenses below sales revenue are often found expressed as a percentage of that revenue. As the first item listed on a financial statement, it becomes the pivot or anchor from which other line items are proportional to.