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Gross Revenues Defined

What are Gross Revenues?

Allow me to explain.

If you are just learning how to read & analyze financial statements, one of the first things you need to understand is: what are gross revenues?

Gross Revenues are listed in the Revenue Statement of a company’s financial statements.

*** First, gross revenues are revenues a firm may collect in any given period, such as a day, week, month, quarter, or year.

But, gross revenues are only limited to core business revenues. For instance, if a company sells chocolate, the revenue generated by the sale of chocolate to consumers are counted in gross revenues.

*** However, if a firm sold equipment or real estate as a one-time sale, this revenue would not be termed gross revenue, but listed as “Other Income” Simply, although it is money coming in to the business, it is outside of the core company business.

In the financial statements, in the revenue statement, gross revenues are at the very top of the revenue statement. Because of their positioning, gross revenues are often termed: Top Line Revenue.

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