Are sales and revenue the same in the income statement?

Sales, Sales Revenues, or Revenues are what appear at the top of the income statement, and they are mean the same thing. Sales Revenues are the amount of sales the company generated during the period of time. And this shows the net amount typically.

For example, your company sells 1,000,000 units of computers during the year, and its selling price of computer per unit is 1,000 USD.

The Revenues that appear 1,000,000,000 USD in the income statement of your entity.

These amounts are the money that will inflow to the entity.

However, the official word to use in the income statement that is prepared by using IFRS is Revenue.

Are sales revenues appear or report on the balance sheet?

The balance sheet shows only three main element of financial statements including assets, liability and equity. Revenues and expenses are the element of income statement and they are not showing in the balance sheet of the company. However, net losses or profit that the company generate during the period will include in the company’s accumulated losses or retained earning during the year, which is reported in the balance sheet.

Related article  Is Accounting Fun Or a Boring Job? Reasons To Love Your Job As An Accountant