Which definition best describes the word revenue?

• A. income
• B. money that an organization, government or company receives from different sources
• C. price paid for a service
• D. profit

Answer: (A)

Revenue is the total inflow of money that an organization receives from its activities and other sources. That makes the definition describing money the organization receives from different sources the most accurate. Revenue can come from selling goods or services, but it also includes other income streams like licensing, investments, or grants. It’s not the price charged for a single service—that’s the price of that transaction—and it’s not profit, which is what remains after expenses are subtracted. While income is a related term, revenue is the broader, pre-expense inflow from all sources, which is why this definition fits best.