Revenue is the amount earned from a company’s main activities such as selling merchandise or providing services.

A gain results from a peripheral activity, such as selling the old delivery truck. A gain is the amount received that is in excess of the asset’s carrying amount (book value). For example, if the company receives $3,000 for the truck, and its carry amount was $600, the company will report a gain of $2,400.

Income is sometimes used instead of the word revenue: some people refer to the rent they receive as rent income. Generally, accountants use the word income to mean “net of revenues and expenses.” For example, a retailer’s income from operations is sales minus the cost of goods sold minus operating expenses.

Learn more about the Income Statement.

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

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