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Friday 4 September 2009

What is Sales Revenue?

Sales revenue is the total amount of money that the firm has earned from the sale of all its goods and services during a given time period. This is usually six months or a year. If a firm produced just one product or service the sales revenue would be the price of the product multiplied by the number of the product sold. In the case of more than one product or service the revenue from each needs to be added together.


The figure for sales revenue in the profit & loss account does not necessarily mean that the firm has received all that money because although they may have sold that quantity of the product they may still be owed some of the money as debtors. The figure for sales revenue is the figure for the total amount of their product or service, in money terms, that they have sold not the amount of money they have received.
Sales revenue is also often phrased in a profit & loss account as TURNOVER.

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