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| 1. |
What is the difference between Revenue, Gross Profit & Income ? |
| Answer» \tRevenue is the total amount of income generated by the sale of goods or services related to the company\'s primary operations.\tGross profit\xa0is the\xa0difference between\xa0the revenue earned and the cost of goods sold (COGS) for a given period of time.\tIncome is often considered a synonym for revenue, as both terms refer to positive cash flow. However, in a financial context, the term income almost always refers to the bottom line, or net income. Also referred to as net profit, this number represents the total amount of cash that remains from the original amount of revenue after accounting for all expenses and additional income. | |