Differentiate between revenue and turnover.

Banking & FinanceManagementCompanies/Organisations

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.

raja
Published on 27-Jul-2020 11:40:42
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