What is bottomline and topline in business?

The top line refers to a company’s revenues or gross sales. The bottom line is a company’s net income, or the “bottom” figure on a company’s income statement. More specifically, the bottom line is a company’s income after all expenses have been deducted from revenues.

What is the difference between revenue and earnings?

Revenue is the amount of money a company brings in from its business activities, such as from the sales of goods and services. Earnings, on the other hand, represents the profit a company has earned; it is calculated by subtracting expenses, interest, and taxes from revenue.

Is sales the same as income?

Net sales, or net revenue, is the money your company earns from doing business with its customers. Net income is profit – what’s left over after you account for all revenue, expenses, gains, losses, taxes and other obligations.

What does sales revenue mean?

But the definition of sales revenue is the revenue that comes from sales of product and services, while revenue includes income generated from things not directly related to the core business, such as income generated from interest on savings or cash paid out by dividends. This is classified as non-operating income.

What is in the topline of a P&L statement?

The top line is a record of a company’s revenue that reflects the full sales price of goods or services sold to consumers within the statement period. It is placed at the top of the income statement, as subsequent line items reference an expense or loss that must be deducted from the gross figure.

What is the bottom line in business?

The bottom line in business refers to a business’s net income, net earnings, or net profit. It is referred to as the bottom line as it is found at the bottom of the net income financial statement. The bottom line is calculated by deducting expenses from revenues.

Why is revenue more important than profit?

Profit is realized when you receive the cash from the revenue. So whilst cash is dependent on revenue, profit is dependent on cash and also on revenue. As such, company’s that show ability to generate huge cash flows are typically valued higher even though they report low profits.

What are cost of sales?

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. Cost of goods sold is also referred to as “cost of sales.”

What’s included in operating income?

Operating income—also called income from operations—takes a company’s gross income, which is equivalent to total revenue minus COGS, and subtracts all operating expenses. A business’s operating expenses are costs incurred from normal operating activities and include items such as office supplies and utilities.

Is sales revenue a debit or credit?

Recording changes in Income Statement Accounts

Account Type	Normal Balance
Equity	CREDIT
Revenue	CREDIT
Expense	DEBIT
Exception:

Is revenue a sales or profit?

Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Profit is the amount of income that remains after accounting for all expenses, debts, additional income streams, and operating costs.

What’s the difference between revenue and sales in a business?

Although revenue and sales are considered one and the same in many cases. There is still a slight difference between revenue vs sales. Revenue is the total amount of money generated by a company. Sales are the total consideration accrued from selling goods or services by a company. Sales are a subset of revenue.

What is the difference between revenue and income?

Revenue is the total amount of income generated by the sale of goods or services, while income is earnings or profit—revenue minus expenses. Revenue is the total amount of income generated by the sale of goods or services, while income is earnings or profit—revenue minus expenses.

What’s the difference between market cap and revenue?

Revenue, on the other hand, has nothing to do with the share price. Revenue is the amount of money a company pulls in as a result of sales. It is possible for a company to have a large market cap but low revenues. Internet startups are cases in point.

What’s the difference between revenue, profit and bottom line?

Profit, on the other hand, is referred to as the bottom line. Profit is lower than revenue because expenses and liabilities are deducted. Is Revenue the Same as Sales? Revenue is commonly referred to as sales.