Revenue

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/revenue

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the double-entry bookkeeping impact?Revenue is recorded as a credit in general ledger accounts, increasing equity
2. What is revenue in a business?Revenue is the total money a company gets from selling its products or services. It is the top line on the income statement.
3. How do companies count revenue?Companies can count revenue when they get the money (cash basis) or when they earn it, even if they haven't received cash yet (accrual basis). The accrual method shows a clearer picture of how well the company is doing.

Accrual Basis Accounting: A method of accounting that records revenue when earned and expenses when incurred, regardless of cash flow.
Income Statement: A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues and expenses.
Generally Accepted Accounting Principles (GAAP): A common set of accounting principles, standards, and procedures used in the United States.
International Financial Reporting Standards (IFRS): A set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.