Revenue Accounts

Revenue is the total amount received by a business or recognized as earned when the business sells something, usually services and goods. In modern accountancy, revenue is recorded when it is earned not when the cash is received from customers. For example when a phone service provider records revenue when calls are made not at the time when you pay the bills. This principle is known as revenue recognition principle.

Types of Revenues

Revenues can be classified as operating revenue and non-operating revenue.

Revenue Accounts List

Following are the common revenue accounts:

Following accounts are called contra revenue accounts because they have exactly opposite characteristics of revenue accounts. Important contra revenue accounts are:

Written by Irfanullah Jan