WHAT IS "REVENUE FROM OPERATIONS" IN ACCOUNTS. BASIC ACCOUNTING TERMS.

Transcript

00:00Ever wondered how companies actually make money? Let's uncover the secret in a minute.

00:04Revenue from operations. Sounds fancy, right? It's actually pretty simple. It's the money a

00:08business makes from its main activities. Think of a shampoo company. They earn revenue by selling,

00:13yep, you guessed it, shampoos. Now don't get lost in the bubbles. Net sales are key here.

00:17That's your total sales minus any returns. But what about financial enterprises? For them,

00:22revenue from operations includes interest earned and dividends received. So if a bank

00:26earns interest from loans, that's their operational revenue. Remember,

00:29revenue from operations is all about the core activities. And just like that, you've got it.

00:34Stay tuned for more quick and easy accounting tips with me, Sonia Satya.

00:37Don't forget to hit subscribe on Accounting by Sonia Satya for more videos. Thanks for watching.