Legal Definitions - revenue

Revenue refers to the total income generated by an individual, business, or government entity from its normal operations or other sources, before any expenses are subtracted. It represents the gross amount of money or value received.

• Example 1 (Business Operations): A small independent bookstore sells books, magazines, and offers coffee. Over the course of a month, the total amount of money collected from all these sales, before paying for the cost of books, employee salaries, or rent, constitutes the bookstore's revenue for that month.

  Explanation: This illustrates revenue as the gross receipts from selling goods and services, which is the primary way a business generates its income.

• Example 2 (Government Income): A state government collects funds from various sources, including income taxes paid by its residents, sales taxes on goods purchased, vehicle registration fees, and licensing fees for businesses. The sum of all these collections over a fiscal year makes up the state's total public revenue, which it then uses to fund public services like education, infrastructure, and healthcare.

  Explanation: This demonstrates how government entities generate revenue from a variety of sources, primarily taxes and fees, to finance their operations and provide services to the public.

• Example 3 (Service-Based Business): A consulting firm charges clients for its expert advice and project management services. If the firm completes three projects in a quarter, billing one client $20,000, another $35,000, and a third $15,000, the total of $70,000 represents the firm's revenue for that quarter, prior to accounting for consultant salaries or office expenses.

  Explanation: This shows revenue as the total earnings from providing services, highlighting that it's the gross amount received from all client engagements.