Turnover vs. Revenue

By Jaxson

  • Revenue

    In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover.

    Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, earned during a period of time, as in “Last year, Company X had revenue of $42 million”. Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, in the balance statement it is a subsection of the Equity section and revenue increases equity, it is often referred to as the “top line” due to its position on the income statement at the very top. This is to be contrasted with the “bottom line” which denotes net income (gross revenues minus total expenses).For non-profit organizations, annual revenue may be referred to as gross receipts. This revenue includes donations from individuals and corporations, support from government agencies, income from activities related to the organization’s mission, and income from fundraising activities, membership dues, and financial securities such as stocks, bonds or investment funds.

    In general usage, revenue is income received by an organization in the form of cash or cash equivalents. Sales revenue or revenues is income received from selling goods or services over a period of time. Tax revenue is income that a government receives from taxpayers.

    In more formal usage, revenue is a calculation or estimation of periodic income based on a particular standard accounting practice or the rules established by a government or government agency. Two common accounting methods, cash basis accounting and accrual basis accounting, do not use the same process for measuring revenue. Corporations that offer shares for sale to the public are usually required by law to report revenue based on generally accepted accounting principles or International Financial Reporting Standards.

    In a double-entry bookkeeping system, revenue accounts are general ledger accounts that are summarized periodically under the heading Revenue or Revenues on an income statement. Revenue account names describe the type of revenue, such as “Repair service revenue”, “Rent revenue earned” or “Sales”.

  • Turnover (noun)

    The amount of money taken as sales transacted in a given period.

    “The company had an annual turnover of $500,000.”

  • Turnover (noun)

    The frequency with which stock is replaced after being used or sold, workers are replaced after leaving, a property changes hands, etc.

    “High staff-turnover can lead to low morale amongst employees”

    “Those apartments have a high turnover because they are so close to the railroad tracks.”

  • Turnover (noun)

    A semicircular pastry made by turning one half of a circular crust over the other, enclosing the filling (usually fruit).

    “They only served me one apple turnover for breakfast.”

  • Turnover (noun)

    A loss of possession of the ball without scoring.

    “The Nimrods committed another dismaying turnover en route to another humiliating loss.”

  • Turnover (noun)

    A measure of leg speed: the frequency with which one takes strides when running, typically given in strides per minute.

  • Turnover (noun)

    The act or result of overturning something; an upset.

    “a bad turnover in a carriage”

  • Turnover (noun)

    An apprentice, in any trade, who is handed over from one master to another to complete his time.

  • Turnover (adjective)

    Capable of being turned over; designed to be turned over.

    “a turnover collar”

  • Revenue (noun)

    The income returned by an investment.

  • Revenue (noun)

    The total income received from a given source.

  • Revenue (noun)

    All income generated for some political entity’s treasury by taxation and other means.

  • Revenue (noun)

    The total sales; turnover.

  • Revenue (noun)

    The net revenue, net sales.

  • Revenue (verb)

    To generate revenue.

  • Revenue (verb)

    To supply with revenue.

  • Turnover (noun)

    the amount of money taken by a business in a particular period

    “a turnover approaching £4 million”

  • Turnover (noun)

    the rate at which employees leave a workforce and are replaced

    “high staff turnover left the program with too many young instructors”

    “an annual turnover of staff as high as 100%”

  • Turnover (noun)

    the rate at which goods are sold and replaced in a shop.

  • Turnover (noun)

    a small pie made by folding a piece of pastry over on itself to enclose a sweet filling

    “an apple turnover”

  • Turnover (noun)

    (in a game) a loss of possession of the ball to the opposing team

    “the team were sitting on their lead and taking care to avoid turnovers”

  • Revenue (noun)

    income, especially when of an organization and of a substantial nature

    “traders have lost £10,000 in revenue since the traffic scheme was implemented”

  • Revenue (noun)

    a state’s annual income from which public expenses are met

    “the government’s tax revenues”

    “his priority was to raise government revenue and to lower expenditure”

  • Revenue (noun)

    the department of the civil service collecting state revenue

    “when the revenue makes a demand for tax, that demand is implicitly backed by the powers of the state”

Oxford Dictionary

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