The Concept of Sales Revenue

Sales revenue is the income generated by selling goods to consumers. It is a portion of the total revenue and excludes other sources of income like dividends and interest. Decreased sales revenue negatively affects a company, while increased sales revenue allows for expansion and research. Payments for goods or services received later are referred to as deferred revenue.

Companies calculate the sales revenue using a certain formula.

For example, a company sells 2000 pens in a day, and the price of each pen is $2. Therefore, the sales revenue for that day will be as follows:

Therefore, the sales revenue for that day will be $4000.