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, of the entity at the period of time and they generally refer to the total revenues that the company makes during the period.

Sales Revenues are the number of sales the company generated during the period of time. And this shows the net amount typically in the income statement.

It is net of sales discount, return, rebate, and before tax. In some cases, sales are probably different from revenues considering the sales are the gross amount before deducting the sales discount, sales return, and rebate.

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 appear at 1,000,000,000 USD in the income statement of your entity. If in case there is a sales return, sales discount, or rebate, then these sales revenues will need to deduct all of that amount.

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 elements of financial statements including assets, liability, and equity. Revenues and expenses are the elements of the income statement and they are not shown on the balance sheet of the company.

However, net losses or profit that the company generates during the period will include in the company’s accumulated losses or retained earnings during the year, which is reported on the balance sheet.

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