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Difference between Revenue & Gain

Revenue

Usually understood to be total income of a company resulting from its main operating activities. Main operating activities may be manufacturing and selling goods for a manufacturing company, providing legal services for a law firm, or providing leased assets for a leasing company.

 Revenue represents the total amount of income before any expenses are subtracted. In pure accounting terms, revenue is an increase in assets or decrease in liabilities on the company’s books. Revenues are also called sales, especially in context of companies producing or selling tangible products.

Revenue is referred to by a variety of names including sales, fees, interest, dividends, royalties and rent. 

Gain

Similar to income as a secondary type of revenue, except that gain refers to incidental and nonrecurring transactions. For example, rent income may be received by a company regularly, which is why it will be an income.

On the other hand, gain on disposal of fixed assets is called a gain because sale of fixed assets does not take place regularly.

When gains are recognize in the statement of comprehensive income, they usually displayed separately because knowledge of them is useful for making economic decisions
Difference between Revenue & Gain Reviewed by Azreen Mohamed on Sunday, November 23, 2014 Rating: 5

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