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Revenue is considered to be earned when:
Cash is received
Production is done
Sale is effected
All of the above
The revenue number is the income a company generates before any expenses are taken out. Therefore, when a company has "top-line growth," the company is experiencing an increase in gross sales or revenue.
Both revenue and net income are useful in determining the financial strength of a company, but they are not interchangeable. Revenue only indicates how effective a company is at generating sales and revenue and does not take into consideration operating efficiencies which could have a dramatic impact on the bottom line.
By: Barka Mirza ProfileResourcesReport error
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