Differentiate between revenue and turnover.

The major differences between revenue and turnover are as follows −

Revenue

• It is the total value of goods sold by a company.

• It is the money earned by selling goods/services.

• It effects the profitability of a company.

• It calculates the gross profit, net profit and operating profit.

• It determines growth of the company.

• The types of revenue are operating revenue and non-operating revenue.

• It is mandatory to report on income statement.

Turnover

• It is an income generated by trading of goods/services.

• It is makes/burns of the asset by a company.

• It effects the efficiency of a company.

• It calculates inventory turnover ratio, asset turnover ratio, sale turnover ratio, accounts receivable and accounts payable ratio.

• It manages production levels.

• The types of turnover are inventory, cash and labour.

• It is not mandatory to report.