Definition of Revinue

• Revenue is income before costs are deducted.
  
  

Sources of Revenue

• Revenue could be income from goods or services sold. Revenue can also include rental income from properties that a company owns but leases out.
  
  

Definition of Profit

• Profit is the money left after costs are taken out.
  
  

Types of Profit

• Gross profit is revenue minus the cost of goods sold. Net profit is revenue minus the cost of goods sold and all of the other costs involved with the business. Those costs can include salaries, taxes, insurance, rent, and utility bills.
  
  

Revenue Doesn't Always Mean Profit

• On Nov. 16, 2009 General Motors announced revenue of $26,352,000,000 for the period of July 10 through Sept. 30. In that time period they lost $1,151,000,000.