Random Research on various notionsNo. 2Note:
This writing is the mere product of my curiosity and will not constitute a formalopinion of any sort. Though, all/any comments are welcome.
Income - Profit - Revenue - Turnover: are they synonymous?
I am not a native speaker. However, I did encounter quite a few troubles, just trying tounderstand the concept for tax law translation purpose. So let us take a good look at how it isexplained by various native speakers. Here is one of them from the U.S.
Revenue is the “top line” amount corresponding to the total benefits generated frombusiness activity. Income is the “bottom line” amount that results after deductingexpenses from revenue. In some countries, revenue is also referred to as “turnover.”This gives rise to an accounting equation:Revenues – Expenses = IncomeHere is another one from New Zealand
come is all the money that comes
. Also known as revenue or turnover; Profit iswhat is left over after we deduct
expenses from income; Example, ourrevenue/income/turnover is the money that the clients pay when we invoice them;And the profit (or loss) is what we have left after deducting electricity, salaries andother expenses;This gives rise to the same accounting equation, but expressed in a different manner:Revenues – Expenses = Profits
Now we understand that Revenues and Turnover are synonymous in both examples.2.
Income and Revenues are not synonyms in the 1
Income and Revenues are synonyms in the 2
example. And there is “Profits”.
One of the 4 most significant financial statements is called:
. Some peoplealso call it: Profit and Loss Statement. We know that Loss is not a synonym of Income. So