Operating Revenue

Tax Glossary Definition

Operating Revenue

Operating revenue encompasses the complete cash inflow derived from a business's primary income-generating activities. It signifies the sales or revenue directly generated from the sale of products or the provision of services.

Example:

A retail clothing store earns money by selling apparel. The total income it receives from selling shirts, trousers, and accessories during a financial year is considered its operating revenue, as it arises directly from its core business activity—selling clothing.

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