Revenues - What are revenues?
Definition: Revenues are income a company receives in its day-to-day business operations.
Revenues are made in large part with the sale of goods and services. There are other ways of making revenue however, such as from interest, dividends, or royalties paid to a business by another company.
Where it appears in the Financial Statements
Revenues can be found at the top of the Profit and Loss Statement, above the section of Expenses. The reason the Profit and Loss Statement is constructed in such a way is to calculate Net Income, which is equal to Revenues - Expenses.
How to Record Revenues
Revenues are increased on the Credit side, and are recognised in the financial statements depending on the financial standards the business is using.