Explain What Is The Difference Between Income and Revenue

December 1st, 2009 Comments off
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The major difference between Income and Revenue is that Income encompasses both revenue and gains ( like for example gains or loss from disposal of fixed assets, foreign exchanges, etc which do not arise from the core business of an entity )

Income definition and scope is very much wider namely it denotes the increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

Whereas:

Revenue definition  is merely income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties.

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Financial Accounting

 
 

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