Understanding Revenue: The Top Line
Revenue, often referred to as turnover or sales, represents the total amount of money a business generates from its core operations over a specific period. It’s the gross income before any deductions are made. Think of it as the total sum of all sales transactions – whether cash or credit – from selling goods or services. For example, if a bakery sells 100 loaves of bread at $5 each, its revenue for that sale is $500. This figure is crucial for understanding the overall scale of the business and its market reach, but it doesn’t