Revenues (Income Statement)
Income Statement
1.) Revenues
Revenues are the total amount of income a company earns from its normal business activities, such as selling goods or providing services. In short, revenue is the starting point of profit calculation and shows how much a company brings in from its core operations.
1. Sales Revenue
Income from selling goods to customers
When customers pay their bill, the income needs to go into Sales Revenue
2. Service Revenue
Income from providing services rather than physical products
Comes from our reporting services
3. Rent Revenue
Income earned from leasing out property or equipment
Can be a primary or secondary source of income
4. Interest Revenue
Income from interest earned on investments or loans to others
Common for financial institutions or companies with idle cash investments
Not relevant for us right now
5. Dividend Revenue
Earnings from dividends paid by other companies in which the business holds shares
Not relevant right now
6. Commission Revenue
Income earned by acting as an agent or intermediary in a transaction
Common in real estate, brokerage, or sales-based industries
7. Subscription Revenue
Recurring income from customers who pay for access over time
Examples: streaming services, SaaS businesses, membership programs
Will be relevant for our “membership” model
8. Licensing Revenue
Earnings from allowing others to use intellectual property, like patents, software, or trademarks
Often seen in tech, media, and entertainment industries
9. Franchise Revenue
Income earned from franchising the company’s brand or business model
Includes initial fees and ongoing royalties
Not relevant right now
10. Other Operating Revenue
Miscellaneous income from secondary activities related to the core business
Examples: training fees, support services, extended warranties
11. Non-Operating Revenue
Income not related to the company’s main operations
Examples: gains on asset sales, legal settlements, or foreign exchange gains
12. Gains
Increases in income from activities not part of regular business operations
Examples: profit from selling long-term assets, investment property, or equipment above book value
Reported separately from normal revenues on financial statements