Sales Revenue
Accounting glossary · Understand, connect, apply
Sales revenue is revenue arising from selling goods in an entity’s ordinary activities, measured under the applicable revenue-recognition requirements.
Example
A retailer transfers goods to a customer for an agreed price of $250 and records the sale when the recognition conditions are met.
Remember the difference
Sales revenue is not gross profit. Customer returns, allowances and discounts may reduce the reported sales amount.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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