The locations are why revenue is often called the top-line number, while net income or profit is called the bottom line number. Revenue can be broken down and listed as separate line items on a company’s income statement based on the type of revenue.
For example, many companies list operating income separately, which is the money earned from a company’s core business operations. Conversely, non-operating revenue is the money earned from secondary sources, which could be investment income or proceeds from the sale of an asset. A company’s revenue usually includes income from both cash and credit sales. Using depreciation, a business expenses a portion of the asset’s value over each year of its useful life, instead of allocating the Continue reading “Sales Revenue”