Question

Which of the following best describes revenue?A. Resources of a company.B. Sales of goods and services to a customer.C. Cash received from a customer.D. Dividends paid to stockholders.

Answer 1

Answer: Option B

Explanation: In simple words, revenue refers to the income received by an organisation by performing its main activities. It is the amount of cash inflow made by the company before deducting the expense incurred to generate those inflows.

It is also sometimes referred to as gross profit or sales.

Thus, from the above we can conclude that the correct option is B.